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

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

COVID
Red Deer down to 313 active cases of COVID-19

Alberta reports an additional 411 COVID-19 cases

Seniors in the 65-unit Piper Creek Lodge are among those waiting for COVID-19 vaccinations. (File photo by Advocate staff)
Central Alberta senior lodges anxiously waiting for COVID-19 vaccinations

“Should be at the front of the line, not the back of the line”

THE CANADIAN PRESS/Alex Panetta
Economists “cautiously hopeful” for economic recovery in Alberta

Charles St. Arnaud says Alberta’s recovery will rebound along with roll-out of the COVID-19 vaccine

Alberta’s chief medical officer of health Dr. Deena Hinshaw acknowledged that Friday would be one year since the first case of COVID-19 was identified in the province. (photography by Chris Schwarz/Government of Alberta)
Three more Red Deer COVID-19 deaths, 331 active cases in Alberta

Red Deer is down to 362 active cases of the virus

Caitlin Kraft, the sister of Jeffery Kraft, stands third from the left, holding a sign calling for the maximum sentence for Campbell, who is charged with manslaughter. (Photo by Paul Cowley)
UPDATED: Judge again rejects submission of 7-year sentence for slaying of Kraft

Tyler John Campbell charged with second-degree murder for December 2019 homicide

Supporters rally outside court as Pastor James Coates of GraceLife Church is in court to appeal bail conditions, after he was arrested for holding day services in violation of COVID-19 rules, in Edmonton, Alta., on Thursday March 4, 2021. THE CANADIAN PRESS/Jason Franson
‘Law remains valid:’ Pastor accused of violating health orders to remain in jail

The Justice Centre for Constitutional Freedoms is representing the pastor

A decommissioned pumpjack is shown at a well head on an oil and gas installation near Cremona, Alta., Saturday, Oct. 29, 2016. The Alberta Energy Regulator says it is suspending all of the licences held by an oil and gas producer with more than 2,200 wells and 2,100 pipelines after it failed to bring its operations into compliance. THE CANADIAN PRESS/Jeff McIntosh
Alberta Energy Regulator suspends licences of oil and gas producer that owes $67M

The company is being asked to comply with past orders to clean up historic spills and contamination

Prime Minister Justin Trudeau holds a press conference in Ottawa Friday, March 5, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau holds firm on premiers’ health-care funding demands, COVID-19 aid comes first

Premiers argue that the current amount doesn’t keep pace with yearly cost increases of about five per cent

Pictured here is Stettler’s Jenner Smith with a guide dog from Aspen Service Dogs. An online auction will be running soon to help raise funds for Jenner to receive his very own service dog later this year. Jenner, who is four years old, was diagnosed with Autism Spectrum Disorder in 2019. photo submitted
An online auction is planned to raise funds for a service dog for a Stettler family

Jenner Smith, four, was diagnosed with Autism Spectrum Disorder in 2019

Walter Gretzky father of hockey hall-of-famer Wayne Gretzky waves to fans as the Buffalo Sabres play against the Toronto Maple Leafs during third period NHL hockey action in Toronto on Tuesday, Jan. 17, 2017. THE CANADIAN PRESS/Nathan Denette
Walter Gretzky, father of the Great One, dies at 82

Canada’s hockey dad had battled Parkinson’s disease and other health issues

This Dec. 2, 2020 photo provided by Johnson & Johnson shows vials of its Janssen subsidiary’s COVID-19 vaccine in the United States. THE CANADIAN PRESS/AP-Johnson & Johnson via AP
Canada approves Johnson & Johnson’s 1-shot COVID-19 vaccine

It is the 4th vaccine approved in Canada and the 1st that requires just a single dose

(AP Photo/Richard Vogel, File)
Pandemic stress, isolation key factors as to why Canadians turned to cannabis, alcohol

Study found that isolation played key role in Canadians’ substance use

Most Read