Royal Dutch Shell on September 30 said that it would cut 7,000 to 9,000 jobs, or roughly 10% of its some 83,000 workforces, by the end of 2022, as part of a transition toward low-carbon energy. The layoffs will include about 1,500 staff who agreed to take voluntary redundancy in 2020. The Anglo-Dutch company said the job reduction would lead to savings of between $2 billion and $2.5 billion by 2022.
Last month, Shell initiated a review of its businesses aimed at reducing costs that would free up cash, allowing it to focus more on renewables. The company is exploring ways to cut upstream opex and capex by 30%-40%. It also plans to divest 7 of its 17 refineries. Shell expects that its upstream oil and gas production to have dropped to around 3.04 million boepd in the third quarter due to the coronavirus pandemic and offshore output cuts related to hurricanes.
Previously, rival BP announced plans to lay off around 10,000 jobs as part of efforts to transform the oil giant to cleaner energy. BP, Shell, and Total are expected to compete for market share in the renewable energy market along with existing players outside the oil and gas sector.
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Published on October 1, 2020 9:44 AM (GMT+8)Last Updated on October 1, 2020 12:59 PM (GMT+8)
