Sources claim that Colonial Pipeline will cut jobs.

According to two sources with knowledge of the situation and a statement from the company, The Colonial Pipeline Company informed its employees that it plans to reduce some positions this week.

In response to questions about job cuts, the company stated: "We informed our employees that a recent evaluation to ensure our organization was best aligned in order to continue meeting our business strategies and priorities safely will result in some changes to team structures and individual roles." It was not possible to determine the extent of the job reductions immediately. Colonial Pipeline refused to reveal how many jobs will be eliminated.

Brookfield Infrastructure Partners, a New York-based asset management firm, announced the changes just a few months ago.

Take over

Colonial, in a $9 billion deal, became the sole owner of the 5,500 mile pipeline network. It was constructed in the 1960s.

The company's previous owners included European oil giant Shell, investment firm KKR and Canadian pension fund Caisse de depot et placement du Quebec. It was also owned by the investments arm of private U.S. conglomerate Koch Industries, as well as asset manager IFM Investors.

Colonial, which transports over 2.5 million barrels of fuel per day from the U.S. Gulf Coast up to the top consumption centers along the East Coast of the United States, says the changes won't affect its operation.

The statement said that the changes would not affect its commitment to provide safe, reliable and responsible fuel transportation for more than fifty million Americans every day.

Colonial has been working to increase the amount of fuel that it can transport on its network this year. This was achieved through operational improvements and changes in the way products are delivered and placed on the system.

Protests

From its shippers. (Reporting and editing by Diane Craft in New York, Shariq Khan)

(source: Reuters)