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Friday, December 3, 2021

Shell to cut 6,500 jobs

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Oil giant Royal Dutch Shell has said it plans to cut 6,500 jobs this year.

The firm said it was taking action amid a slump in oil prices and that it was “planning for a prolonged downturn” as it slashed costs for 2015 by 10% or four billion US dollars.

Investment for the year is being pared by a fifth or seven billion US dollars. Further cost-cutting is expected in 2016.

Chief executive Ben van Beurden said: “We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery.”

It is the first time that Shell has put a number on total job cuts for 2015, though it said that the majority of jobs within that had already been announced, including the loss of 500 in the UK plus others in Norway, the US and Nigeria.

The global workforce today stands at 94,000.

Mr van Beurden said Shell was making good progress on its planned £47 billion takeover of British Gas.

He said Shell was aiming to become a “simpler and more profitable company” – and after the transaction would cut spending on exploration while reviewing the way it invests capital in long-term projects and disposing of assets.

“These are challenging times for the industry, and we are responding with urgency and determination, but also with a great sense of excitement for the future.”

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