Royal Dutch Shell plans to cut between 7,000 and 9,000 jobs as it moves away from fossil fuels. The cuts will come by the end of 2020 and account for more than 10% of its workforce. In June, Shell decreased the estimated value of its assets by $22b as the price of oil and gas plummeted.
- The company estimates the cuts will save $2.5b by 2022
- 1,500 employees have already agreed to voluntary leave packages that come into effect at the end of 2020.
- Shell plans on becoming carbon neutral by 2050, shifting its business from oil and gas production to low-carbon electricity, biofuels, and hydrogen.
- The company's strategy is to become "a simpler, more streamlined, more competitive organization" which will use its oil and gas business to fund lower carbon products, according to CEO Ben van Beurden.
- BP previously announced that it would lay off 10,000 workers (15% of its workforce) as it also restructures.