Royal Dutch Shell (Shell) will be cutting jobs as part of its restructuring.

Shell has 83,000 workers as of the end-2019, and up to 10 per cent of its workforce will be affected.

7,000 to 9,000 jobs will be cut

The Chief Executive Officer of the British-Dutch multinational oil and gas company, Ben van Beurden said in an interview published on Sep. 30 that the company is accelerating its move towards net-zero emissions energy business.

"If we want to get there, if we want to succeed as an integral part of a society heading towards net-zero emissions, now is the time to accelerate."

About 7,000 to 9,000 jobs will be reduced by the end of 2022, including around 1,500 people who have already agreed to take voluntary redundancy this year.

Other cost-saving measures include working virtually, cutting down on travel, and use of contractors. However, van Beurden said, "a large part of the cost-saving for Shell will come from having fewer people".

With other measures, the overhaul is expected to result in an annual cost saving of USD$2-2.5 billion (S$2.7-3.4 billion).

Besides cost-saving, van Beurden also explained that this reorganisation will help to remove organisational complexity and allow them to maintain the company's competitiveness by becoming more efficient.

"We have looked closely at how we are organised and we feel that, in many places, we have too many layers in the company: too many levels between me [...] In some cases there are good reasons for that, but as a principle we are looking to remove that complexity, and cost, so we can be the nimble, efficient and customer-focused company we need to be."

In response to Mothership's queries on how the Shell Singapore workforce will be affected, a Shell spokesperson said that the company is still working through the details.

Here's the statement in full:

"Through reshaping Shell, we aim to enable our strategy, streamline our organisation and take out costs.  As a result, we will be a simpler, more streamlined, more competitive organisation that is more nimble and able to respond to customers. However, no detailed guidance or final figures on where the impacts will be as this is still being worked through."

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Top photo via Shell website