Shell cuts 9,000 jobs to shift in low-carbon energy transmission as oil demand slumps

On Wednesday, Royal Dutch Shell (RDSA) announced that it plans to cut 9,000 jobs or roughly 10% of its workforce as part of a major corporate overhaul to keep pace with the global transition to clean energy as oil demand slumps amid the coronavirus pandemic.

The British-Dutch multinational oil and gas company said that it hired 83,000 employees at the end of 2019. It also added that the job cuts would be implemented by 2022.

“We have looked closely at how we are organised and we feel that, in many places, we have too many layers in the company,” Shell’s Chief Executive Officer Ben van Beurden said in an interview published on its website.

“If we want to get there, if we want to succeed as an integral part of a society heading towards net-zero (carbon) emissions, now is the time to accelerate,” he added.

Shell stated that the reorganization would generate additional annual revenue of around $2 billion to $2.5 billion in the next two years.

On Wednesday, Shell’s shares in London climbed by 0.15% in the morning trade.