The Royal Dutch Shell has come up with a new reorganizational policy to initiate cost-cutting strategies. The ongoing pandemic has affected the world economy and that is the reason many industries are planning for new strategies to revive the economic loss they faced due to the pandemic crisis.
Royal Dutch Shell To Reduce 9,000 Employees
Royal Dutch Shell is known as one of the largest petroleum corporations in the world. Recently the company released an official statement where it mentioned its latest reorganizational policy. According to the statement, the company is planning to shift to using low carbon energy from oil and gas production.
The company has been under a big loss as the oil prices have reduced amid the crisis. Therefore they are opting for low carbon energy usage because it is quite cost-friendly. According to CEO, Bernard Looney, the company is focussing more on renewable resources rather than oil and gas. He also added that oil and gas production is not only expensive but is also harmful to the environment. Hence they have concluded that reducing oil and gas production will be beneficial for the company and is bio-friendly as well.
But with this, they have made another announcement which is related to the working force of the company. As per the announcement, Royal Dutch Shell is planning to reduce more than 10% of its employees and it means that around 9,000 people working under this company will lose their jobs.
As of 2020, the company employs more than 83,000 people and by reducing 10% of employees, the company is planning to save up to $4 billion by the end of 2022.
Additional Strategies Adopted By Royal Dutch Shell
Apart from switching to renewable resources and reducing their workforce, the company has also adopted some other strategies to deal with the economic loss they have been dealing with due to the pandemic crisis.
In an interview with the Reuters, a spokesperson for the company has revealed that they are planning to reduce the number of refineries as a part of their cost-cutting policy. The Royal Dutch Shell owns 17 refineries and is planning to keep only 10 refineries and has already agreed to sell three of them.
In addition to that, the company is also planning to suspend additional bonuses for its employees. With these strategies, the Royal Dutch Shell has planned to revive the financial loss they had due to the ongoing pandemic crisis.
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