“Over the coming months we will go through a comprehensive review of the company. Where appropriate we will redesign our organization to adapt to a different future…”
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“Over the coming months we will go through a comprehensive review of the company. Where appropriate we will redesign our organization to adapt to a different future…”
LONDON — Royal Dutch Shell will announce a major restructuring by the end of the year as the energy company prepares to accelerate its shift towards low-carbon, CEO Ben van Beurden told employees according to a company source.
In a video interview published on Shell’s internal website, van Beurden said that the restructuring would involve job cuts as part of broad cost reductions, although no figures have been decided yet, according to sources who saw the interview.
“Ben spoke about positioning the company in the energy transition,” one of the sources said. “The company will announce the new shape of the organization by the end of the year.”
The new structure will not take effect before 2021.
“Over the coming months we will go through a comprehensive review of the company. Where appropriate we will redesign our organization to adapt to a different future and emerge stronger,” Shell said in a statement.
The review, which could result in the first major change to Shell’s structure in over a decade, comes after the Anglo-Dutch company set out ambitious plans to reduce greenhouse gas emissions to net zero by 2050 and announced a cut in its dividend for the first time since the 1940s.
The company is not alone, with BP also planning a historic restructuring as new CEO Bernard Looney sets out to “reinvent” the British company with renewables and low-carbon energy. Italy’s Eni also plans a major overhaul.
In the video, Shell’s van Beurden said the strategic review was a result of the economic crisis caused by the coronavirus pandemic, something he believes will accelerate the world’s transition towards greener energy.
Shell recently announced a voluntary redundancy scheme in response to a sharp drop in revenue as oil prices tumbled, a company spokeswoman said on Tuesday.
It is also already planning to reduce 2020 capital expenditure to $20 billion at most from a planned level of about $25 billion, and cut an additional $3 billion to $4 billion off operating costs over the next 12 months.
Shell said it will provide more details about its strategy in an investor event later this year.
Posted in: Ben van Beurden, Business ethics, Business Principles, Climate Change, COVID-19, Environment, Fossil Fuels, John Donovan, Oil, Oil Prices, Reuters, Royal Dutch Shell, Royal Dutch Shell Plc, RoyalDutchShellPlc.com, Shell, Shell Energy, Shell Job Cuts, Sin Stocks.
Tagged: Alternative Energy · Ben van Beurden · BP · Environment · Gulf of Mexico · Oil · Royal Dutch Shell Plc · Shell
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Bogus Group: More BG Group (Shell) executive 'turmoil'. Just love the "stepping down with immediate effect for personal reasons" euphemism.
Bogus Group: 330 job cuts in Aberdeen, with the new rhetoric by a Shell 'spokesperson', "this intends to ensure we are set up to thrive throughout the energy transition and be a simpler organisation". https://www.upstreamonline.com/exploration/330-job-cuts-oil-giant-shell-lays-out-losses-to-uk-team/2-1-942991
PRELUDE WHITE ELEPHANT: Shell has not revealed the cost of Prelude but analysts estimate the price tag has ballooned to as much as A$17bn ($13bn). The Anglo-Dutch company reported $9bn in impairment charges on its Australian gas assets in the second and third quarters of 2020. https://www.ft.com/content/6ba54787-6d21-48d2-93b2-273cdcf48455
Peter Voser: The recent invasion of the US Capitol puts Trump's visit to Shell's Chemical plant in Pennsylvania in August 2019 in a completely different perspective. It's now appropriate to state that Shell has provided a political platform and support in kind to POTUS. Supporting political activities, providing facilities for political rallies and bribing a senior government official are a violation of Shell's own business principles and Code of Conduct. Various individuals have lodged complaints with the Shell global helpline alleging improper business conduct involving the RDS Chairman, the US Country Chair, US government relations and others. These have all been dismissed as "reporters expressing a political view". Shell should re-open the case and seek appropriate consequence management against those involved. But I suspect the perpetrators are the so-called untouchables to whom the business principles and code of conduct are not applicable. Shame on the Head of BID for not having the guts to take this further.
In reply to Peter Voser.
REPLY FROM JOHN DONOVAN
Bye bye Chad & Ben: Looking forward to your February “Strategic”’utterances. Also look forward to the announcement about your successors as CEO and Chair. A classic case of way too cosy non executive and executive branches. Time to move on from your nonsense! Especially for your employees.
Bonus Group: Shell site seized in Nigeria over unpaid damages. https://www.bloomberg.com/amp/news/articles/2020-12-23/shell-oil-site-seized-by-nigerian-state-over-unpaid-damages
Bonus Group: Shell to write-down assets. https://www.offshore-energy.biz/shell-to-write-down-oil-and-gas-assets-value-by-as-much-as-4-5-billion/
LondonLad: Well “Fletcher” (aka “Escaped from C16Atraz”?) I no longer work in Shell but enjoy their lovely pension. So your crude comment fails to impress. As for Shell and its shareholders having made money from oil & gas I have absolutely now problems. Perhaps you and the likes of “Greta Thunderbirds are go” would prefer that we all lived in caves wearing loin cloths (made of course from animals that have died naturally) and walked everywhere?
Fletcher: LondonLad - you come across as a real Ben van Beurden panty sniffer. You don't happen to work in their spin machine by any chance? Oh and don't forget where Shell and the shareholders have made their money. (clue - it's black and gooey and highly combustible)
LondonLad: Well “Escaped from C16Atraz” you have got your facts wrong. United are 5th with a game in hand - that’s hardly mid-table is it! I bet my friend MUSaint will feel equally annoyed. Saying that “Shell doesn’t care at all about climate change” is also an incorrect statement, akin to some of the waffle that Greenpeace, Extinction Rebellion and even David Attenborough make. I do however agree that it is a shame that more redundancies are on the way but in this Covid environment which company is free of this staffing issue (some of the UK supermarkets perhaps)? As a shareholder I am glad that the senior management is bottom line driven.
Escaped from C16Atraz: There are many parallels to be drawn between Shell and the one unbeatable Manchester United. Both are now mid table. Weak manager, senior players who are arrogant and only play for money, and have got rid of their most hard working players. Shell better get used to mediocrity. It doesn't care at all about climate change but Van Beurden will no doubt continue to sell more of the crown jewels to greenwash its reputation like the loony who heads BP.
Bonus Group: https://amp.theguardian.com/business/2020/nov/30/shell-in-court-over-claims-it-hampered-fossil-fuels-phase-out
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