Shell to cut up to 9,000 jobs as part of major transition plan

Royal Dutch Shell has announced that it plans to cut 7,000 to 9,000 jobs, which accounts for over 10% of its workforce, by the end of 2022.

According to the company, the total job cuts also include 1,500 people who have opted to take ‘voluntary redundancy’ this year.

The latest move comes as part of a major transition to shift the oil and gas major to low-carbon energy, Reuters reported.

Shell noted that the reorganisation will lead to annual savings of between $2bn and $2.5bn by 2022.

Shell had a workforce of 83,000 at the end of last year.

The company recently said it is planning to reduce its oil and gas expenditure to increase its investment in the renewable energy and power markets.

The company launched a broad review last month, which aims to reduce up to 40% of its oil and gas production spending as part of preparations to shift to low-carbon energy.

In its operations update, Shell also noted that its oil and gas production will see a steep drop in the third quarter this year to around 3,050 barrels per day (bpd) of oil.

The production drop is attributed to lower output as a result of the Covid-19 pandemic and hurricanes, which resulted in many offshore platforms being shut down.

Last month, Shell subsidiary SWEPI LP sold its Appalachia shale gas position to Seneca Resources and NFG Midstream Covington, which are subsidiaries of US energy company National Fuel Gas (NFG).

In May, Shell reduced its first-quarter dividend as revenue decreased by 28% to $60.0bn.