Royal Dutch Shell announced its plans to slash up to 9,000 jobs as part of the company’s major overhaul to shift to low-carbon energy. The move will deliver the company an annual cost savings of up to $2.5 billion by 2022, the company stated.
The company said 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 includes 1,500 people who have volunteered to leave the company this year.
“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. “Make no mistake: this is an extremely tough process. It is very painful to know that you will end up saying goodbye to quite a few good people,” he added.
Earlier in June, Shell wrote down the value of its assets by as much as $22 billion and slashed its oil price forecasts. Shell has committed to achieving net zero carbon emissions from its own operations by 2050.
Van Beurden said that the company would still produce some oil and gas by that date, but it would “predominantly” sell low-carbon electricity, low-carbon biofuels and hydrogen.
Earlier this year, Shell’s age-old rival BP announced plans to cut around 10,000 jobs to expand its renewables business and reduce oil and gas production.
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