ROYAL Dutch Shell today unleashed a major restructuring to combat plunging oil prices driven by the coronavirus pandemic.
The oil exploration giant warned that it will also spark more asset write-downs in the third quartre.
Shell also disclosed that it would axe between 7,000 and 9,000 positions by the end of 2022 in a massive job cuts that would amount to roughly 10 percent of its total global workforce of 80,000 staff across more than 70 countries.
The warning is coming after Shell had flagged in July that job cuts were in the pipeline after posting a colossal $18.1-billion second-quartre net loss as coronavirus savaged world oil market.
According to the energy giant, 1,500 staffs have already agreed to take voluntary redundancy this year.
The Anglo-Dutch giant aims to generate annual savings of between $2.0 billion and $2.5 billion (1.7-2.1 billion euros) under the plan, which also includes other measures to streamline the business in response to the fallout from the COVID-19 crisis.
Chief Executive of Shell, Ben van Beurden, said the corporation would suffer more post-tax impairment charges of between $1.0 and $1.5 billion in third-quartre earnings to be published soon.
“This is an extremely tough process. It is very painful to know that you will end up saying goodbye to quite a few good people. But we are doing this because we have to, because it is the right thing to do for the future of the company. We have to be a simpler, more streamlined, more competitive organisation that is more nimble and able to respond to customers,” he said.
It will be recalled that Shell’s main British rival, BP, is axing around 10,000 jobs or 15 percent of its total workforce in response to the virus turmoil.