Shell plans to cut 400 jobs in the Netherlands

ROYAL Dutch Shell is to shift its business model in response to lower oil prices, according to Reuters, which the oil giant has said could result in the loss of 400 jobs.

Following reports by Reuters, which gained access to internal documentation, a Shell spokesperson has confirmed it is “transforming into a simpler company, through reshaping of the portfolio and a structural change in our culture and ways of working”.

A company statement sent to The Chemical Engineer also said that “approximately 400 [staff] are potentially at risk of redundancy during the last quarter of 2017/first half of 2018.” Job losses are expected to be predominately in its major projects and energy technology operations.

This would represent around 25% of the roles in the department, according to the internal staff consultation document, which was given to an independent website used by Shell staff, and seen by Reuters. Shell currently employs approximately 10,000 people in the Netherlands and 92,000 worldwide.

The proposed restructuring is expected to see dozens of research roles move from the Netherlands to Bangalore, India, while lower oil prices have also prompted Shell to move away from mega-projects, which have been its focus for over 20 years.

Further cost-savings reported by Reuters include the outsourcing of more "lower value-adding" design work, by reducing the number of expatriate staff and by cutting management layers in its project and technology operations.

Shell says that the final impact of restructuring is not yet known, and will be subject to engagement with its employees and employee representatives. Its statement continued: “We anticipate some of the employees involved in the changes will secure alternative roles within Shell.”