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January 13, 2021

Royal Dutch Shell to cut jobs from North Sea operations

Royal Dutch Shell has announced plans to cut 330 jobs from its UK North Sea operations as part of its global restructuring.

By Srivani Venna

Royal Dutch Shell has announced plans to cut 330 jobs from its UK North Sea operations as part of its global restructuring.

The majority of the job cuts are expected to take place in Aberdeen.

BBC quoted Shell as saying that most of the posts at its Aberdeen office will be lost over the next two years.

Some of the jobs that would be cut will be linked to the Brent Charlie platform decommissioning project.

According to Shell, the company remains committed to the North Sea and will continue to invest in its operations. With this, it will be left with a workforce of approximately 1,000 people in Aberdeen.

Losses are expected to be primarily office-based. The move is not anticipated to have any impact on offshore platforms and onshore operational sites such as the St Fergus Gas Terminal.

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The latest redundancies form part of the announcement made by the company in September that up to 9,000 posts worldwide will be cut by the end of next year due to a slump in demand for oil.

Total job cuts also included 1,500 people who have opted to take voluntary redundancy in 2020.

At that time, Reuters quoted Shell as saying that the move was part of a major transition to shift the company to low-carbon energy.

By next year, the reorganisation is expected to lead to annual savings of between $2bn and $2.5bn.

As part of the transition from fossil fuels, the oil industry is rethinking its future plans. Companies such as Shell are accelerating that transition amid the Covid-19 pandemic.

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