In this May 17, 2019, file photo, a car leaves a Shell station after getting gas in Sacramento, Calif. THE CANADIAN PRESS/AP/Rich Pedroncelli

Shell plan to cut up to 9,000 jobs could result in 100s of fewer jobs in Canada

Shell’s presence in Canada was reduced in 2017 when it sold most of its Alberta oilsands assets

Hundreds of Canadian employees of Royal Dutch Shell could be affected by its plan revealed Wednesday to cut between 7,000 and 9,000 jobs worldwide by the end of 2022.

The company has 3,500 workers in Canada, accounting for about 4.2 per cent of its global workforce of about 83,000 employees, confirmed Shell Canada spokeswoman Tara Lemay.

If the cuts are made proportionately, they would result in between 294 and 378 fewer jobs in Canada.

“We do not have an exact figure because the details are still being worked out and we have never had a target to reduce a particular number of jobs,” Lemay said in an email.

Shell’s presence in Canada was reduced in 2017 when it sold most of its Alberta oilsands assets to Canadian Natural Resources Ltd.

However, it heads up the consortium building the $40-billion LNG Canada export project on the West Coast, owns about 1,300 retail fuel stations and retains interests in conventional oil and gas production, refineries in Sarnia and near Edmonton, and petrochemical plants.

The cuts are being made following a global collapse in demand for oil and a subsequent slide in prices during the coronavirus pandemic.

The parent company said around 1,500 employees have already agreed to take voluntary buyouts this year and that it’s looking at a raft of other areas where it can cut costs, such as travel, its use of contractors and virtual working.

Overall, it said it expects the cost-cutting measures to secure annual cost savings of between US$2 billion and US$2.5 billion by 2022.

“We have to be a simpler, more streamlined, more competitive organization that is more nimble and able to respond to customers,” Ben van Beurden, the company’s chief executive, said. “To be more nimble, we have to remove a certain amount of organizational complexity.”

In June, rival BP said it was cutting around 10,000 jobs from its workforce to cope with the impact of the virus.

Shell also said that it expects third-quarter production to be between 2.15 million and 2.25 million barrels of oil equivalent a day, and that daily production levels have been impacted by between 60,000 and 70,000 barrels because of hurricanes in the Gulf of Mexico.

The Canadian Press

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

wine
Third annual Christmas Wine Survivor is rapidly approaching

Funds raised will support the Friends of the Library Society

teach
Smooth start to Christ King Catholic School’s year in unprecendented times

Students and staff at Christ-King Catholic School continue to adapt to pandemic’s impact on learning

Health Minister Tyler Shandro and Dr. Deena Hinshaw, the chief medical officer of health, receive flu shot. Photo via Government of Alberta
COVID-19: One more death in central zone

Ponoka County on province’s watchlist

Many rural municipalities were concerned about a proposed reduction to their industrial revenues, but Alberta’s Municipal Affairs minister has come up with an alternative solution. (Photo contributed)
Province and rural municipalities agree on a plan to support Alberta’s energy industry

Creating new wells or pipelines would result in a three year ‘tax holiday’

Terry Chesla
Stettler’s Terry Chesla has landed this year’s Stettler Ambassador Award

The Business and Citizenship Awards is hosted by the Stettler Regional Board of Trade and Community Development

In this photo provided by Shannon Kiss, smoke from the CalWood Fire billows, Sunday, Oct. 18, 2020, as seen from Gunbarrel, Colo. (Shannon Kiss via AP)
‘First guys out:’ Western Canadian air tanker fleet busy despite drop in wildfires

CEO believes wildfires have become more dangerous in recent years as people live closer to where they start

A passer-by walks past a COVID-19 testing clinic in Montreal, Friday, Oct. 16, 2020. THE CANADIAN PRESS/Ryan Remiorz
Canada ‘yet to see’ deaths due to recent COVID surge as cases hit 200,000

Much of the increase in case numbers can be attributed to Ontario and Quebec

robbery
UPDATE: Suspect identified in early morning shooting

Rimbey RCMP had responded to a complaint of an armed robbery at the Bluffton City General Store

Executive Director of Agape Kate Halas (left) receives $1000 from Sgt. Eric Christensen (right) on behalf of Agape. Photo/ Shaela Dansereau.
Former Wetaskiwin Peace Officer wins provincial award; gives back to Wetaskiwin community

Eric Christensen has won the Alberta Association of Community Peace Officers Award of Excellence.

Agriculture Minister Devin Dreeshen (Alberta government photo)
Big boost for Alberta college agriculture research

The $2-million agreement to benefit Lethbridge College’s applied research team

Grant and Barbara Howse, in quarantine in Invermere. Mike Turner photo
Denied entry into U.S., Canadian couple still forced to quarantine for 2 weeks

The rules around crossing the U.S. border led to a bizarre situation for an Invermere couple

Employee Sophia Lovink shows off a bag of merchandise in Toronto on Thursday, June 11, 2020. (THE CANADIAN PRESS/Nathan Denette)
Canada gets C-average grade on 2nd year of cannabis legalization

Cannabis Council of Canada releases report card on federal government and legalization

Canadian and American flags fly near the Ambassador Bridge at the Canada-USA border crossing in Windsor, Ont. on Saturday, March 21, 2020. Restrictions on non-essential travel between Canada and the United States are being extended until at least Nov. 21. THE CANADIAN PRESS/Rob Gurdebeke
Non-essential travel restrictions at Canada-U.S. border extended to at least Nov. 21

The restrictions do not apply to those providing essential services in either country

(The Canadian Perss)
Banff wolves have lower survival rate due to hunting, trapping outside park boundary

Researchers looked at 72 radio-collared wolves in the national park from 1987 to August 2019

Most Read