Shell to cut 9,000 jobs toward low carbon energy

The Anglo-Dutch company said on Wednesday that it would cut between 7,000 and 9,000 positions by the end of 2022, potentially affecting more than 10% of its workforce. The total consists of 1,500 people who have volunteered to leave the company this year.

The job loss is part of an overhaul aimed at cutting costs and simplifying the company’s structure as it transforms into low-carbon energy. The shell (RDSA) The overhaul is expected to deliver annual cost savings of up to $ 2.5 billion by 2022.

“We need to be a simpler, more streamlined, more competitive organization that is more agile and capable of responding to customers,” CEO Ben van Bairden said in a statement. He said, “Make no mistake: It is a very difficult process. It is very painful to know that you will say goodbye to some good people.”

Shell has committed to achieving net zero carbon emissions by 2050 from its own operations. Van Birden said Wednesday that the company would still produce some oil and gas by that date, but that it “primarily” sells low-carbon electricity, low-carbon biofuels. And hydrogen.

“We need to have a net zero in all our operations, which means major changes in refineries, chemical sites, onshore and offshore production facilities. But it also means that we have to change the type of our products,” van Bairden said. Added.

In the future, the company will use its oil exploration and production business to generate cash that can be invested in low-carbon products. This division will no longer focus on how many barrels of oil or cubic feet of gas it produces.

Shell will also shrink its refining business. “We will only keep what is strategically required of us and integrate those refineries with our chemicals business, which we plan to develop,” Van Bairden said.

Some analysts believe that global demand for oil may never return to record highs of 2019, instead hoping that the epidemic will permanently reopen the way people live and travel – and Consumers will push companies and governments to overcome the climate crisis with greater risk.

European energy companies have been much more aggressive than US rivals Exxon Mobil (XOM) In the shift of cleaner energy. BP (BP) It announced in June that it would cut 10,000 jobs, or 15% of its workforce, as part of its own overhaul.

Leave a Reply

Your email address will not be published.