Royal Dutch Shell (LON: RDSA) will cut 9,000 jobs as part of a new cost-cutting drive.
The oil giant has suffered amid the pandemic, where the price of oil plummeted.
In the update, the group’s chief executive also revealed plans that push the oil company towards a net-zero emissions energy business in the next 30 years.
“It is very painful to know that you will end up saying goodbye to quite a few good people. I know I, and many others in Shell, will be saying goodbye to people we know well and really like and who have great loyalty to the company. But we are doing this because we have to, because it is the right thing to do for the future of the company,” said Ben van Beurden.
“We have to be a simpler, more streamlined, more competitive organisation that is more nimble and able to respond to customers.
“COVID-19 has shown we can work very effectively in ways we did not think we were ready for yet. But a large part of the cost saving for Shell will come from having fewer people.
“We do not have an exact figure because the details are still being worked out, and we have never had a target to reduce a particular number of jobs. But we can say that, because of the efficiencies we expect to gain, we will reduce between 7,000 and 9,000 jobs by the end of 2022,” added van Beurden.
In the update, van Beurden also said that Shell expects output in the third quarter to drop to 3,050 barrels per day due to the pandemic and hurricanes that forced offshore platforms to close.
It’s been a tough year for Shell, which saw profits plummet in the second quarter by 82% to $638m.