Shell cuts up to 9,000 jobs to switch to low-carbon energy

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The Anglo-Dutch company announced on Wednesday that it would cut between 7,000 and 9,000 jobs by the end of 2022, potentially affecting more than 10% of its workforce. The total includes 1,500 people who have volunteered to leave the company this year.

The job cuts are part of an overhaul aimed at reducing costs and simplifying the company’s structure in its transition to low-carbon energy. coquille (RDSA) expects the redesign to deliver annual savings of up to $ 2.5 billion by 2022.

“We need to be an organization that is simpler, more streamlined, more competitive, more agile and able to respond to customers,” CEO Ben van Beurden said in a statement. “Make no mistake, this is an extremely difficult process. It is very painful to know that you will end up saying goodbye to a lot of good people, ”he added.

Shell has pledged to achieve net zero carbon emissions from its own operations by 2050. Van Beurden said on Wednesday that the company would continue to produce oil and gas by then, but would sell “primarily »Low carbon electricity and low carbon biofuels. and hydrogen.“We need to be net zero in all of our operations, which means major changes in refineries, chemical sites, onshore and offshore production facilities. But it also means we need to change the type of products we sell. Added van Beurden.

Going forward, the company will use its oil exploration and production activities to generate cash that can be invested in low-carbon products. The division will no longer focus on the number of barrels of oil or cubic feet of gas it produces.

Shell will also reduce its refining activities. “We will only retain what is strategically essential for us and integrate these refineries into our chemical business, which we plan to expand,” said van Beurden.

Some analysts believe global oil demand may never return to its all-time high of 2019, instead expecting the pandemic to permanently reshape the way people live and travel – and that consumers will push businesses and businesses. governments to face the climate crisis with more urgency.

European energy companies have been much more aggressive than their American rivals such as Exxon Mobil (XOM) in the shift to cleaner energy. BP (BP) announced in June that it would cut 10,000 jobs, or 15% of its workforce, as part of its own overhaul.

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