LONDON - Royal Dutch Shell PLC has announced that it will slash up to 9,000 jobs or over 10% of its global workforce as part of its effort to transition to low-carbon energy.

According to Shell, the reorganisation will result in around US$2-2.5 billion in annual savings by 2022. As of the end of 2019, the company had 83,000 employees.

By the end of 2022, the Anglo-Dutch oil giant expects to cut 7,000-9,000 jobs, including around 1,500 employees who have agreed to take voluntary redundancy this year.

“We have looked closely at how we are organised and we feel that, in many places, we have too many layers in the company,” Shell CEO Ben van Beurden said in an internal interview published on the company’s website, Wednesday (30/9).

None of this changes our values as a company, and we will do what we have to do with honesty, integrity and respect for people. We will be as fast as we can and we will show care for all those who lose their roles or who are negatively affected.”

As reported by Reuters, following the announcement Shell’s share price at the London Stock Exchange climbed 0.15% by 09.20 GMT on Wednesday.

The company projected its oil and gas production to drop significantly to around 3.04 million barrels of oil equivalent per day (BOEPD) due to lower output during the ongoing coronavirus (COVID-19) pandemic. However, it also predicted a recovery in fuel sales as a number of countries began to ease lockdown measures. (MS)