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TransCanada cuts 185 jobs as it restructures

Keystone XL proponent TransCanada Corp. has laid off 185 people in its major projects department, most of them in Calgary.

Pipeline company eliminates jobs to remain competitive and cut costs

TransCanada CEO Russ Girling addresses the company's annual meeting in Calgary, Friday, May 2, 2014. THE CANADIAN PRESS/Jeff McIntosh (The Canadian Press)

Keystone XL proponent TransCanada Corp. has laid off 185 people in its major projects department, most of them in Calgary.

The jobs that were cut on Tuesday included about 100 full-time employees while the rest were contract workers.

As a pipeline operator, TransCanada has remained profitable through the oil downturn. In the first quarter, it earned $387 compared to $412 million for the same period in 2014. However, the industry it serves with its pipelines had a collective loss of more than $600 million over the same period.

In an e-mail, TransCanada's spokesman, Mark Cooper said the company cut the positions as part of a restructuring  to control costs and remain competitive.

Cooper said TransCanada needs to provide low-cost services as its customers have been deeply affected by the current low-price environment that has left companies in the oilpatch struggling.

TransCanada is working to move forward on a number of projects, including the Keystone XL Pipeline and the Energy East pipeline.

Both projects have faced delays and regulatory hurdles. The company has about 6,000 employees across North America.