Anglo-Dutch said on Wednesday it would cut 7,000 to 9,000 jobs by the end of 2022, affecting more than 10% of its workforce. A total of 1,500 people have volunteered to leave the company this year.
“We want to be a simple, highly streamlined, highly competitive organization that is very fast and responsive to customers,” CEO Ben von Burton said in a statement. “Make no mistake: this is a very difficult act. It is very painful to know that you will say goodbye to a few good people,” he added.
By 2050, Shell is committed to achieving net zero carbon emissions from its own operations. Van Bourdon said Wednesday that the company would produce some more oil and gas by that date, but that it would “mainly” sell low-carbon electricity, low-carbon biofuels and hydrogen.
“We need to be net zero in all our operations, which means there will be big changes in refineries, chemical bases, coastal and marine production facilities. But that means we have to change the type of products we sell,” Van Bourdon added.
In the future, the company will use its oil exploration and manufacturing business to raise money that can be invested in low-oil carbon products. This section will no longer focus on how many barrels of oil or cubic feet of gas it produces.
Shell will also shrink its refining business. “We will only have what we need strategically, we will integrate those refineries with our chemicals business and they plan to grow,” Van Bourdon said.
Some analysts believe that global demand for oil will never reach its 2019 record, and instead expect the epidemic to permanently change the way people live and travel – and push consumer companies and governments to deal with the climate crisis even more urgently.