A half-dozen fossil fuel companies are reporting more than 23,500 job cuts due to low oil prices, most of them immediate and the rest by 2020.
The announcements add to industry layoffs that exceeded 150,000 in mid-June, according to oilfield staffing specialists Swift Worldwide Resources.
Rigzone reports this week that Royal Dutch Shell and UK-based Centrica plc are eliminating 6,500 and 6,000 positions respectively, Italy’s Saipem S.p.A. more than 8,000, and Statoil and Chevron 1,500 each. Most of the layoffs take effect this year, while Centrica expects to reduce its work force by 2020.
“We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery. We’re taking a prudent approach, pulling on powerful financial levers to manage through this downturn, always making sure we have the capacity to pay attractive dividends for shareholders,” said Shell CEO Ben van Beurden.
“These are challenging times for the industry, and we are responding with urgency and determination, but also with a great sense of excitement for the future.”