Shell plans 400 job cuts at Dutch projects and technology department
LONDON (Reuters) – Royal Dutch Shell Plc plans to cut more than 400 jobs in the Netherlands, especially in its large projects and energy technology operations, while the oil giant changed its business model in response to declining Oil prices, as an internal document that had access Reuters.
The world’s second largest oil company by market capitalization, said in a statement in response to questions from Reuters that “400 (staff) potentially at risk of being fired during the last quarter of 2017 / first half of 2018.”
This represents about a quarter of the roles within the department, according to the personal consultation document, which Reuters. The group employs 92,000 people worldwide.
“Shell is a simpler business,” a spokesman said, adding that the final number of job cuts would be the subject of employee consultations. He refused to answer detailed questions about the consultation document.
The proposed restructuring, which will also see dozens of research work moving from the Netherlands to Bangalore, India, highlights how the oil price collapse appears in the Anglo-Dutch giant to move away from megaprojects. Focused on more than 20 years.
He also observed a growing shift in the most valuable roles, such as the search for low-cost countries.
“There will be less complex and complex megaprojects and proportionately simpler projects to complex media … This shows a” convenience “for delivery of the project,” said the document, which was presented to the royaldutchshellplc .com, a website Independent company used by Shell staff and seen by Reuters.
In addition to the reduction of staff, Shell aims to reduce costs by outsourcing design work and “less value” by reducing the number of staff in expensive jobs foreign jobs and reduce the levels management of their projects and technological activities .
“The industry as a whole has become less effective over the last two decades, while automotive, aerospace, solar and wind energy, for example, has become more efficient,” he said.
The oil industry has reduced jobs – about 12,500 Shell – and investment budgets in recent years since the decline in oil prices has made many viable projects previously unprofitable.
While the second quarter saw a doubling of profits for many companies, analysts believe that high production costs and high operating levels in the U.S. Shale oil fields represent a significant recovery of around $ 50 per barrel. Brent crude failed during the last two years is short-term. This price is about half the gross negotiated level during the last six years.