(Adds details of spending cuts, investment manager comment)
By Nia Williams and Scott Haggett
CALGARY, Alberta, Jan 13 (Reuters) - Canada's largest oiland gas company Suncor Energy Inc said on Tuesday itwould cut about 1,000 employees and contractors, freeze hiringand slash C$1 billion (US$837 million) in capital spending inresponse to falling crude oil prices.
Suncor said it would also defer some capital projects thathave not yet been sanctioned, such as MacKay River 2 in northernAlberta and the White Rose Extension offshore Atlantic Canada.
Production outlook for 2015 remained unchanged at 540,000 to585,000 barrels per day.
"Today's cuts are consistent with our commitment to spendwithin our means and maintain a strong balance sheet," SuncorChief Executive Steve Williams said in a statement.
"We will monitor the pricing environment and take furtheraction as required."
Suncor's revision of its 2015 capital budget to betweenC$6.2 billion to C$6.8 million, from $7.2 billion to $7.8billion when it was presented in November, brings it in linewith other Canadian oil producers that have cut spending as oilprices fell.
Benchmark crude oil prices have fallen more than 50 percentsince June in response to a global supply glut and producergroup OPEC's refusal to cut production. U.S. crude fell to a near six-year low of $44.20 a barrel on Tuesday.
The majority of the 1,000 job cuts will be among Suncor'scontract workforce, although some employees will also be laidoff. A Suncor spokeswoman said the company had around 14,000salaried employees, not including contractors.
Royal Dutch Shell said last week that it would cutbetween 5 percent and 10 percent of the positions at its AlbianSands mining project. The company employs 3000 people at thatsite.
Canadian Natural Resources Ltd, which on Mondayreduced its capital spending and deferred an oil sands project, also has a hiring freeze.
"Without a sharp bounce back in the price of oil, I wouldexpect further announcements of layoffs and a rise inunemployment," said Jim Hall, chief investment officer at MawerInvestment Management which oversees more than C$25 billion. (Editing by Richard Chang)
