Royal Dutch Shell will shed up to 9,000 jobs as it undergoes a long-term restructuring around climate-friendly energy sources and continues to grapple with the coronavirus pandemic that has battered the oil industry.
Why it matters: The cuts could amount to over 10% of the company's global workforce, which was 83,000 at the end of 2019.
- Oil giants are shaking up their plans as they cut costs. For European-based majors, that means diversifying over time away from fossil fuels.
- It follows BP's June announcement that it would cut its global workforce by 10,000 jobs, or 14%.
The state of play: Shell expects to reduce its workforce by somewhere between 7,000 and 9,000 jobs by the end of 2022, which it said will help achieve as much as $2.5 billion in annual savings.
- "We have to be a simpler, more streamlined, more competitive organization that is more nimble and able to respond to customers," CEO Ben van Beurden said in a statement on Wednesday.
- He added that the figure includes around 1,500 people who have "already agreed to take voluntary redundancy this year."