Shell to cut up to 9,000 jobs in energy transition plans

Dutch energy giant Shell plans to cut between 7 thousand and 9 thousand jobs in a reorganization, partly to prepare the group for the switch to green energy, the oil and gas giant announced on Wednesday, NOS reports.

Shell currently employees around 82 thousand people worldwide, including around 10 thousand in the Netherlands. This reorganization, one of the biggest in the company's history, should cut costs by between 1.7 billion and 2.1 billion euros annually. Shell hopes to have it implemented by end 2022.

In a written response to RTL Nieuws, Shell said that it is "engaged in a strategic reorientation" in connection with the energy transition. The organization is also becoming simpler to cut costs.

Shell is under increasing pressure to invest more in sustainable energy. A climate resolution by activist investor Follow This, calling Shell to come up with concrete objectives that are in line with the goals in the Paris climate agreement, was voted down last year, but no less than 14.4 percent of Shell shareholders supported it. The previous time it was only 5.5 percent.

The company does seem to be gradually incorporating green energy into its traditionally fossil-fuel focused portfolio. It has plans to build a major wind farm at sea together with Eneco, without getting subsidies to do so. It also acquired NewMotion, one of the largest providers of electric car charging stations in Europe.