TT impact too early to tell in Shell's worldwide job cuts

It is too early to tell how global energy giant Shell's decision to cut up to 9,000 jobs by 2020 will affect TT operations.

In a statement to Newsday, Shell TT said, "We are undergoing a strategic review of the organisation, which intends to ensure we are set up to thrive throughout the energy transition and be a simpler organisation, which is also cost-competitive.

"We are looking at a range of options and scenarios at this time, which are being carefully evaluated. This review is ongoing and we are not able to say at this point how Shell Trinidad and Tobago's organisation structure will be impacted."

Netherlands-based Shell is one of the major energy operators in TT and the biggest shareholder in Atlantic LNG.

In June BP, the largest energy operator in TT, announced it would be cutting 10,000 jobs globally; in September, it was reported that the company would cut 25 per cent of its TT staff.

In a statement on Wednesday, Shell’s CEO Ben van Beurden said the layoffs would be an extremely tough process, but one it must do “because it is the right thing to do for the future of the company.

“We have to be a simpler, more streamlined, more competitive organisation that is more nimble and able to respond to customers,” he said.

Van Beurden said Shell is looking at cutting costs, like travel and contractors, while looking at other opportunities, like virtual working.

“Covid19 has shown we can work very effectively in ways we did not think we were ready for yet. But a large part of the cost saving for Shell will come from having fewer people.”

Shell has already set a target to be carbon neutral (net-zero emissions) by 2050.

“Tackling climate change is mainly about the use of energy. Currently, about 85 per cent of our carbon footprint comes from our customers’ emissions when they use our products. That is where the real challenge is. So we have to have a role in helping our customers decarbonise,” Van Beurden said.