Royal Dutch Shell has plans for a major restructuring by the end of the year, moving towards a low-carbon energy transition strategy, according to Reuters.
In a video interview published on Shell’s internal website, Shell CEO Ben 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 organisation 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 organisation to adapt to a different future and emerge stronger,” Shell said in a statement.
Earlier this year, Shell announced its goal to become a net-zero emissions business by 2050, joining other oil supermajors like BP and Eni in unveiling plans to cut carbon emissions.