Enbridge Inc. plans to cut its workforce by about 6% as one of the world’s largest oil pipeline operators faces steep economic headwinds.

The company will reduce 650 out of about 11,300 employees due to higher interest rates, economic uncertainty and unspecified geopolitical developments, all of which “contribute to increasingly challenging business conditions across many industries,” the Calgary-based company said in an email.

“Reducing our operating costs and strengthening our competitiveness will enable us to weather near-term challenges and remain the first-choice energy delivery company in North America and beyond,” a spokesperson for the company said.

Enbridge operates a series of oil and gas pipelines across the US and Canada as well as energy terminals on the US Gulf Coast and offshore windmills in Europe. The job cuts happen as companies including Alphabet, Amazon, Citigroup, Ebay, Macy’s, Microsoft, Shell, Sports Illustrated, and Wayfair have all announced job cuts so far in 2024 in a negative signal for economic growth going forward.

Enbridge is facing new competition from the soon-to-start Trans Mountain oil pipeline, which may draw some oil shippers away from the company’s Mainline export pipeline system. The cuts, first reported by the Calgary Herald, will happen in February, the newspaper reported.

The company is expected to report fourth-quarter financial results on Feb. 9.