Shell to shed 9,000 jobs in low-carbon energy push

Royal Dutch Shell has revealed plans to cut up to 9,000 jobs, or over 10% of its workforce, as part of the oil giant’s strategy to transition towards lower carbon energy production.

Last month the company launched a broad review of its business, which focused on cost-cutting opportunities ahead of its move into the power and renewable energy sectors, where margins are comparatively lower.

And today Shell said it expected to cut 7,000 to 9,000 jobs by the end of 2022 – including 1,500 people who have agreed to take voluntary redundancy this year. The move will lead to annual savings of US$2 billion to $2.5 billion by 2022.

Rival oil major BP made a similar decision in June, when CEO Bernard Looney announced the firm’s plans to cut 10,000 jobs while rapidly expanding its renewables business and reducing oil and gas production.

Competition is likely to intensify as oil firms and utilities are increasingly pressured to go green and meet carbon-neutral targets inspired by the landmark 2015 Paris Agreement.