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Shell to Cut Up to 9,000 Jobs

by Bioreports
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Royal Dutch Shell PLC said it would cut up to 9,000 jobs in a broad restructuring, as the energy giant grapples with the continuing fallout of the coronavirus pandemic.

News of the cuts came Wednesday as the company warned it would report another set of poor earnings for the third quarter. Shell flagged a weaker performance in its trading activities—previously a bright spot in an otherwise tough second quarter—and said its oil-and-gas production business would report a second consecutive quarterly loss.

The update from Shell gives a first glimpse at how the world’s biggest oil companies have continued to struggle in the most recent quarter. The pandemic has sapped demand for oil, sending prices tumbling and hitting profits hard. That has already prompted Shell to write down the value of some of its assets and cut its dividend for the first time since World War II.

Shell said it was restructuring to focus more on the highest value oil it produces, grow in liquefied-natural gas and invest in low carbon energy businesses, while shrinking its refining operations. It expects the plan to deliver annual cost savings of $2 billion to $2.5 billion by the end of 2022, including from the staff cuts, less travel and fewer contractors.

It expects to cut between 7,000 and 9,000 jobs from its more than 80,000 employees.

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