il super major, Shell, has announced a plan for job cuts in a new wave of restructuring, which has set jitters down the spines of its workers.
The oldest energy company said on its website that it has over 93,000 staff across over 70 countries.
Shell’s chief executive, Ben van Beurden has, according a report by Reuters, told employees in an internal website video that there would be restructuring and job cuts.
Sources who saw the video told New Telegraph that van Beurden gave no clue on the cadre of staff this would affect, “and this has heightened job loss scare among almost all the staff.”
Shell’s official website has also posted a video message from van Beurden, who says that “Society must remain focused on the longer-term challenge of climate change. Because it hasn’t gone away, it still needs urgent action. Shell has a big part to play.”
Aside from Shell, other oil giants are downsizing their workforce after suffering losses due to the global slump in demand for oil because of the coronavirus crisis.
British oil company, BP Plc., on Monday, June 8, announced plans to cut 10,000 jobs due to the global slump having paused redundancies during the peak of the pandemic, but told staff that around 15 per cent will leave by the end of the year.
BP Chief Executive Officer, Mr. Bernard Looney, blamed a drop in the oil price for the cut, saying, “The oil price has plunged well below the level we need to turn a profit.”
“We are spending much, much more than we make – I am talking millions of dollars, every day,” he added.
However, not only BP is doing some cropping as French oil and gas outfit, Total, may also downsize its workforce after the company suffered a whopping $12 billion deficit in its revenues forecast.
The company has stated its plan to adopt a cost-cutting mechanism to match the deficit, while maintaining that it anticipates a $12 billion revenue shortfall due to a fall in oil prices caused by the COVID-19 outbreak.
Chevron is also one of the major oil giants that have suffered revenue shortfall. It had already announced the plan to sack over 6,000 staff in its global operations.
The latest announcement of $12 billion deficit by Total CEO, Mr. Patrick Pouyanne, is significantly higher than a previous deficit forecast of $9 billion. The increase is expected to force Total to devise deeper cost-cut measures.