The Royal Dutch Shell, yesterday, announced that it has concluded plans to lay-off about 9,000 workers as part of efforts to raise annual savings of up to $2.5billion (£1.9bn) by 2022.
The company, disclosed that around 1,500 of the staff slated for mass sack have agreed to take voluntary redundancy this year – by the end of 2022.
According to a report by SkyNews, the move is part of the company’s efforts to adapt to a low-carbon future and becoming more “streamlined”, with the severe impact of COVID-19 – which caused a slump in demand for oil and a collapse in prices – also a factor.
Shell, according to its data, has 83,000 employees at the end of 2019. The firm said that the new reorganisation would lead to annual savings of up to $2.5bn (£1.9bn) by 2022.
It said the shake-up was expected to result in 7,000 to 9,000 job cuts – including around 1,500 who have agreed to take voluntary redundancy this year – by the end of 2022.
The company would not give a breakdown of how its workforces in different countries would be affected.
Shell employs 6,500 people in the UK.
The company said earlier this year that it was aiming to become a net-zero emissions energy business by 2050.
In May, Shell cut its dividend for the first time since the Second World War in the wake of the coronavirus crisis.
The restructuring comes after rival BP in June revealed a shake-up which will see 10,000 jobs go globally, including 2,000 in the UK.
Shell chief executive Ben van Beurden, said the company was aiming to become a “simpler, more streamlined, more competitive organisation that is more nimble and able to respond to customers”. Culled from The Sun with agency report.
