Virus-hit Shell cutting up to 9,000 jobs by 2022

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File: Royal Dutch Shell said in a statement that it would axe between 7,000 and 9,000 positions by the end of 2022, of which 1,500 staff have already agreed to take voluntary redundancy this year.

AFP/Florian Plaucheur

LONDON - Energy major Shell unleashed a major restructuring to combat plunging oil prices driven by the coronavirus pandemic, warning it will also spark more asset writedowns in the third quarter.

Royal Dutch Shell said in a statement that it would axe between 7,000 and 9,000 positions by the end of 2022, of which 1,500 staff have already agreed to take voluntary redundancy this year.

The job cuts would amount to roughly 10 percent of Shell's total global workforce of 80,000 staff across more than 70 countries.

READ: Oil demand set for slow recovery from virus: IEA

Shell had already flagged in July that job cuts were in the pipeline after posting a colossal $18.1-billion second-quarter net loss as coronavirus savaged the world oil market.

It warned on Wednesday that it would suffer more post-tax impairment charges of between $1.0-$1.5 billion in third-quarter earnings, which will be published at the end of October.

"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," said Chief Executive Ben van Beurden in an interview on the company website.

READ: Coronavirus weighs on global oil demand: IEA

"But we are doing this because we have to, because it is the right thing to do for the future of the company.

"We have to be a simpler, more streamlined, more competitive organisation that is more nimble and able to respond to customers."

Source
AFP