The falling oil prices are causing problems for Shell: The oil company is planning to cut thousands of jobs. The company’s situation is also becoming more drastic due to the Corona crisis.
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Shell is cutting thousands of jobs due to the drastic drop in oil prices during the Corona crisis. 7,000 to 9,000 jobs are to be cut by the end of 2022. The British-Dutch oil company announced on Wednesday in London.
This includes around 1,500 employees who have already accepted severance pay in a job cut that has been ongoing for some time. Shell recently reported that it employed more than 80,000 people in over 70 countries.
The downsizing is expected to cut annual costs by US $ 2 to 2.5 billion (around EUR 1.7 to 2.1 billion). Shell also announced a write-off of $ 1 billion to $ 1.5 billion in the third quarter due to continued pressure on margins.
Other oil companies are also losing money
“We have to become a leaner, more competitive organization that can react more flexibly to the needs of customers,” said Shell CEO Ben van Beurden. Shell is not an isolated case in the industry: The French group Total and the US oil multinationals ExxonMobil and Chevron had recently suffered heavy losses.
Shell has been in a phase of upheaval, and not just since the pandemic. The company wants to improve its carbon dioxide balance through a conversion. Greenhouse gas emissions and those that arise when customers use Shell products should be reduced or offset by over a third within a decade. The goal is savings of around 30 million tons of CO2 per year, which corresponds to around a tenth of the federal government’s reduction target by 2030.