Analyst says Nutrien deal could mean job losses

A Saskatchewan business analyst says a recent merger between Potash Corp. and Agrium could impact jobs.

The new company, Nutrien, has said it expects to generate $500 million in savings per year as a result of the merger. That money is supposed to come mainly from reduced costs in distribution, production and procurement.

Sean Meshke, an associate portfolio manager with PWM Private Wealth Counsel, said salaries could be another area where Nutrien trims costs.

“The company is going to have to announce where that $500 million is going to come from,” he said, noting that many mergers lead to at least some positions being cut.

“That’s usually where synergies and efficiencies come is in headcount, which is jobs,” Meshke said.

Richard Downey, Nutrien vice-president of corporate and investor relations, said that while there would be some duplicated positions in the corporate offices, the merger wouldn’t affect most of the jobs within the newly formed company.

“The large majority of the positions in both companies are at the facilities, at the mines, and those really aren’t impacted,” he said.

Nutrien maintains a head office in Saskatoon, with a large corporate office in Calgary.

With the deal, Nutrien becomes the world’s largest fertilizer producer, with about 20,000 employees operating across 14 countries.