Cenovus Energy is set to cut hundreds of jobs following the merger with Husky Energy.

The two oil companies announced the merger on Sunday with the deal expected to create savings of around $1.2 billion, largely achieved within the first year.

In a statement sent to Mix News, Cenovus noted between 20 and 25 per cent of the combined workforce, which currently sits at around 8,600 positions, will be eliminated.

At the low end, this represents a loss of around 1,720 jobs, while at the high end it represents approximately 2,150 positions.

“As with any merger of this type, there will be overlap and there will be some difficult decisions as we work to create a combined organization best positioned for the future,” said Cenovus in a statement.

Most of the job cuts are expected to take place in Calgary, however, they will also look at other markets that could potentially include Wood Buffalo.

This won’t happen until the transaction is officially closed with the companies expecting this to happen in the first quarter of 2021.

This comes shortly after Suncor Energy announced it would be cutting between 10 to 15 per cent of its workforce over the next 12 to 18 months.