Royal Dutch Shell plans to cut 9,000 jobs, or about 10% of its workforce.
According to Reuters, Shell, which had 83,000 employees at the end of 2019, said the reorganization would lead to annual savings of between $ 2 billion and $ 2.5 billion By 2022.
Last month, the company launched a comprehensive review of its activities aimed at cutting costs, as it prepares to restructure its operations as part of a shift towards low-carbon energy.
The Anglo-Dutch company said it expects to cut between seven and nine thousand jobs by the end of 2022, including 1,500 jobs whose owners have agreed to voluntarily quit this year.
This year, rival BP announced its intention to cut 10,000 jobs as part of CEO Bernard Looney's plans to rapidly expand renewable energy activities and cut oil and gas production.
and cost reduction is critical to Shell's plans to switch to the electricity and renewable energy sectors where cost margins are relatively low.
It is also likely that competition will intensify with competing utility and oil companies, including BP and Total, as all of them are competing for market share as the world's countries turn towards a green economy.
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In an update on its operations, Shell said that its oil and gas production is on track to decline sharply in the third quarter of the year to about 3050 barrels of oil equivalent per day due to the decrease in production due to Corona pandemic and hurricanes have forced offshore oil platforms to close.
