Royal Dutch Shell to Cut Up to 9,000 Jobs

By Adria Calatayud

Royal Dutch Shell PLC said Wednesday that it expects to cut between 7,000 and 9,000 jobs by the end of 2022, as the company said it expects to book charges of between $1.0 billion and $1.5 billion in the third quarter.

The oil major said the job reductions include 1,500 people who have agreed to take voluntary redundancy this year. Shell said it plans to reduce underlying operating costs by between $3.0 billion and $4.0 billion by the first quarter of 2021.

Shell said it expects third-quarter production to be between 2.15 million and 2.25 million barrels of oil equivalent a day, including an impact of 60,000 to 70,000 barrels of oil equivalent a day from hurricanes in the U.S. Gulf of Mexico.

Refinery utilization for the quarter is expected to be between 64% and 68%, and realized gross refining margins are expected to be significantly lower than in the second quarter, the company said. Sales volumes are expected to be between 4 million and 5 million barrels a day, Shell said.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

September 30, 2020 02:44 ET (06:44 GMT)

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