Shell cuts thousands of employees

Shell cuts thousands of employees

Shell cuts thousands of employees

Royal Dutch Shell said it plans to cut 7,000 to 9,000 jobs amid major challenges, including a drop in oil demand amid the Covid-19 pandemic. The British-Dutch oil and gas giant intends to complete the phased staff reductions by 2022, including 1,500 employees who agreed to voluntary layoffs this year.

Shell CEO Ben van Beurden said the job cuts were “the only sure thing for the future of the company” as it seeks to cut costs and restructure to move to clean energy.

Britain's BP (LON: BP) has also faced shrinking revenues and recently announced it plans to lay off 10,000 of its 70,000 employees worldwide.

Oil companies are under increasing pressure from environmental activists and some investors to curtail exploration and production as part of the fight against climate change.

Energy company profits have been hit hard by the pandemic and government containment measures.

Shell employs about 83 thousand people. The layoffs are expected to save $ 2 billion to $ 2.5 billion a year. In April 2020, the company cut dividends for the first time since World War II, before falling to a record $ 18 billion in the second quarter.

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