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

Alberta’s chief medical officer of health, Dr. Deena Hinshaw, confirmed more than 1,000 cases over the weekend Monday afternoon. File photo
COVID-19: Central zone active cases up Monday

‘We’ve now crossed the tipping point,’ says Hinshaw

Right, Ambassador of Hungary to Canada, Her Excellency Dr. Maria Vass-Salazar, lays a wreath at St. Michael’s RC Cemetery in Manfred, Ponoka County on Oct. 25. (Emily Jaycox/Bashaw Star)
Wreath laying ceremony held in Manfred

Ceremony marks 64th anniversary of Hungarian revolution, honours settlers

Alberta has 3,651 active cases of COVID-19. (File photo)
432 new COVID cases sets another record Friday

Central zone holds steady at 126 active cases

B.C. Liberal leader Andrew Wilkinson, B.C. NDP leader John Horgan and B.C. Greens leader Sonia Furstenau. (Black Press Media)
VIDEO: One day until B.C. voters go to the polls in snap election defined by pandemic

NDP Leader John Horgan’s decision to call an election comes more than a year ahead of schedule and during a pandemic

Prime Minister Justin Trudeau makes his way to provide an update on the COVID pandemic in Ottawa on Tuesday, Oct. 27, 2020. Canada has reached a grim milestone in the COVID-19 pandemic, surpassing 10,000 novel coronavirus deaths. THE CANADIAN PRESS/Sean Kilpatrick
Alberta COVID deaths pushes Canada past milestone of 10,000 deaths

Canada crossed the threshold of 5,000 deaths on May 12, a little over two months after the first was reported

Cases in Ponoka (East Ponoka County) as of Oct. 27. (alberta.ca)
Diagnosed cases of COVID-19 at three Ponoka businesses

Town ‘strongly encouraging’ residents to wear non-medical masks in public

Prime Minister Justin Trudeau provides an update on the COVID pandemic during a press conference in Ottawa on Tuesday, Oct. 27, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Trudeau says pandemic ‘really sucks,’ and that Christmas gatherings are up in the air

The prime minister encouraged residents to continue to follow the advice of local health authorities

The Williams Lake Indian Band is stipulating no-go zones for mushroom picking in areas burned by last summer’s wildfires. 100 Mile Free Press photo
Who controls mushroom harvesting on Indigenous lands?

‘We don’t necessarily know where the mushrooms grow, how old the stands need to be, those types of things.’

Canadian and American flags fly near the Ambassador Bridge at the Canada/USA border crossing in Windsor, Ont. on Saturday, March 21, 2020. THE CANADIAN PRESS/Rob Gurdebeke
U.S. election results one factor that could impact immigration to Canada next year

The survey polled 1,523 Canadians between Oct. 23 and Oct. 25

Alberta’s provincial flag flies on a flag pole in Ottawa, Monday July 6, 2020. The Alberta government is hoping to get more Albertans employed by moving to limit the number and type of temporary foreign workers it allows into the province. THE CANADIAN PRESS/Adrian Wyld
Alberta to limit temporary foreign worker program to save jobs for Albertans

Temporary foreign workers already in the province won’t be affected

Submitted
Montana First Nations councillor gives back to youth

Has pledged 10 per cent of his salary for youth programming

Royal Alexandra Hospital front-line workers walk a picket line after walking off the job in a wildcat strike in Edmonton, on Monday, October 26, 2020. THE CANADIAN PRESS/Jason Franson
Alberta labour board orders health-care staff who walked off the job to go back to work

Finance Minister Travis Toews said in a news release that he was pleased with the labour board’s decision

Most Read