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English Español Shell to cut up to 9,000 jobs worldwide

The global energy company plans to reduce its costs by $2 billion with a series of organization changes, including the layoff of thousands of employees.

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Royal Dutch Shell has announced plans to cut between 7,000 and 9,000 jobs as it responds to challenges that include the drop in oil demand due to the COVID-19 pandemic.

The reductions, which include around 1,500 people who have agreed to take voluntary redundancy this year, will be finalized by the end of 2022.

Shell chief executive Ben van Beurden said the job cuts were "the right thing to do for the future of the company" as it strives to become a net-zero emissions energy business.

This and other organizational measures are expected to deliver annual cost savings of between $2.0 to $2.5 billion by 2022. This will partially contribute to the announced underlying operating cost reduction of $3.0 to $4.0 billion by the first quarter 2021.  

The chief executive also spoke about the company’s goal to be a net-zero emissions energy business by 2050.

“We simply have to be better at making decarbonisation a reality in society and that means having a loud, clear voice. If we want to make hydrogen happen, for example, it is not going to be by just building the infrastructure and seeing what happens next,” said van Beurden.

“In biofuels, we are in a venture that is one of the world’s largest sugarcane ethanol producers. In offshore wind, we have been part of winning bids to build projects.”

Shell is also installing world’s largest hydrogen electrolyser in Germany.

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