Shell plans to cut over 400 jobs

New Straits Times - - Business / World -

LONDON: Royal Dutch Shell Plc plans to cut more than 400 jobs in the Nether­lands, mainly at its ma­jor projects and en­ergy tech­nol­ogy op­er­a­tions, as the oil gi­ant shifts its busi­ness model in re­sponse to lower oil prices, ac­cord­ing to an in­ter­nal doc­u­ment seen by Reuters.

The world’s sec­ond-largest oil com­pany by mar­ket cap­i­tal­i­sa­tion said in a state­ment re­spond­ing to ques­tions from Reuters that “ap­prox­i­mately 400 (staff) are po­ten­tially at risk of re­dun­dancy dur­ing the last quar­ter of 2017/first half of 2018”.

That rep­re­sents around a quar­ter of the roles at the depart­ment, ac­cord­ing to the staff con­sul­ta­tion doc­u­ment. The group em­ploys 92,000 world­wide.

“Shell is trans­form­ing into a sim­pler com­pany,” a spokesman said, ad­ding that the fi­nal num­ber of job cuts would be sub­ject to con­sul­ta­tion with em­ploy­ees.

The pro­posed re­struc­tur­ing, which will also see dozens of re­search roles move from the Nether­lands to Ban­ga­lore, In­dia, high­lights how lower oil prices are prompt­ing the An­glo-Dutch oil gi­ant to shift away from the mega-projects which have been its fo­cus for over 20 years.

It also un­der­scores an in­creas­ing shift of higher-value roles, such as re­search to lower cost coun­tries.

“There will be fewer one-of-akind highly com­plex mega-projects and pro­por­tion­ately more sim­ple to medium com­plex projects... This her­alds a more ‘com­modi­tised’ world for project de­liv­ery,” said the doc­u­ment, which was given to roy­al­, an in­de­pen­dent web­site used by Shell staff, and seen by Reuters.

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