The Anglo-Dutch firm said on Wednesday it will cut between 7,000 and 9,000 positions by the end of 2022, potentially impacting more than 10% of its workforce. The total includes 1,500 people who have volunteered to leave the company this year.
“We need to be a simpler, leaner and more competitive organization, more agile and responsive to customers,” CEO Ben van Beurden said in a statement. “Make no mistake ̵
Shell has committed to achieving net zero carbon emissions from its operations by 2050. Van Beurden said Wednesday that the company will still produce oil and gas by that date, but will sell “mostly” low-carbon electricity and biofuels to low carbon and hydrogen emissions.
“We need to be zero in all of our operations, which means big changes in refineries, chemical sites, on-shore and offshore production facilities. But it also means we have to change the type of products we sell,” van Beurden added.
In the future, the company will use its oil exploration and production business to generate liquidity that can be invested in low-carbon products. The division will no longer focus on how many barrels of oil or cubic feet of gas it produces.
Shell will also reduce its refining business. “We will only keep what is strategically essential to us and integrate those refineries with our chemical business, which we intend to grow,” said van Beurden.
Some analysts think global oil demand may never return to its all-time high of 2019, expecting instead that the pandemic will permanently reshape the way people live and travel and that consumers will push companies and governments to tackle the climate crisis. with more urgency.