Royal Dutch Shell has announced a business reorganization that will cut costs and staff over the next two to three years. This is stated in the Anglo-Dutch Oil and Gas Corporation.
In particular, by the end of 2022, the company will cut from seven to nine thousand people (including about 1.5 thousand people who agreed to voluntary redundancy in 2020). Thus, the staff can be reduced by more than 10%. At the end of 2019, the company employed 83,000 people.
As a result of the measures taken, Shell hopes to significantly reduce costs. “Reducing organizational complexity, along with other measures, is expected to result in sustainable annual savings of between $ 2 billion and $ 2.5 billion by 2022,” the press release said.
Shell will cut costs in Russia as well
Earlier, the chairman of Shell in the Russian Federation, Sederic Kremers, said in an interview TASS that cost optimization also affected operations in Russia. This is not surprising, given that the crisis caused the corporation to cut its global capital expenditures by 20% in 2020.
The head of the Russian concern noted that Shell's capex will be cut from $ 25 billion to $ 20 billion this year. In addition, no one in the corporation will receive an annual bonus this year.
That said, the cost optimization has affected Shell's divisions in different ways, Kremers explained. For example, the contribution of the mining sector to cost reduction will be up to 45%, refining – up to 30%. And the gas segment, including LNG and new energy sources – only 25%.
At the same time, during the Sakhalin Oil and Gas conference, Kremers assured: “Our presence in Russia is very strong, our intentions are clear, clear. We want to take advantage of the growth opportunities that are visible in the Russian market and which will undoubtedly open up in the future. ” : ///
Record Shell announced a reorganization and is reducing its staff first appeared TEKNOBLOG .
The oil market is falling lower and lower
The oil market does not stop falling. According to the data at 10:55 Moscow time, March Brent futures fell 0.15%…
Why the oil industry of the Russian Federation began to be active in Africa
When the first Russia-Africa Summit took place in October 2019, most industry observers believed that many of the projects under…