Royal Dutch Shell (LON:RDSA) will cut 9,000 jobs as part of a new cost-cutting drive.
The oil giant is struggling amid a pandemic where oil prices have plummeted.
In the update, the group’s chief executive revealed plans to push oil companies up to Net-Zero Emissions Energy Business over the next 30 years.
“It’s very painful to know that you’re going to say goodbye to quite a few good people. I know that me and many others in Shell have great loyalty to the company, saying goodbye to people we know well. But we’re doing this, because it’s the right thing for the company’s future.
“We need to be a simpler, more streamlined, more competitive organization that is more agile and more customer-friendly.
“Covid-19 shows that we can work very effectively in ways we didn’t think we were ready yet. But the majority of Shell’s cost savings will come from less people.
“There are no exact numbers as the details are still resolved. We have never had a goal to reduce a certain number of jobs. But we can say that by the end of 2022 we will be reducing 7,000-9,000 jobs by the end of 2022, due to the efficiency we expect to acquire,” added Van Beurden.
In the update, Van Balden also said he expects third-quarter output to fall to 3,050 barrels per day due to the pandemic and hurricanes that forced Shell to close offshore platforms.
It was a tough year for Shell. This was a surge in profits of $638 million, up 82% in the second quarter.
Royal Dutch Shell (LON:RDSA) stocks are trading +1.38% at 997,35 (0848GMT).
