Jobs on the line as Shell shake-up set to affect 24,000 workers

Published on Wednesday 27 May 2009 21:22

OIL major Royal Dutch Shell yesterday confirmed a sweeping restructuring and boardroom overhaul in a move affecting about 24,000 staff.

An unspecified number of job cuts is expected under the shake-up, spearheaded by incoming chief executive Peter Voser.

The new head, who takes over from outgoing chief executive Jeroen van der Veer on 1 July, is merging two of Shell's three "upstream" exploration subsidiaries, with 22,000 staff.

The group is also "streamlining" its corporate affairs division, headquartered in The Hague, where it employs 2,000 people. Most of the changes will affect divisions headquartered outside the UK.

Shell has an upstream operation in Aberdeen, and a London-based corporate affairs function. The group's downstream arm – which covers non-exploration activities – is also headquartered outwith the UK.

Details of the reorganisation follow news on Tuesday that Shell's liquid natural gas division head and board director Linda Cook was leaving.

Speculation of a restructure had mounted following her abrupt decision to quit after 29 years with the group.

It was disclosed yesterday that Cook's role was being axed as Shell merged the upstream business to create two operations – Upstream Americas covering North and South America, and Upstream International for the rest of the world.

In Shell's board-level revamp, three executive committee members will sit on the board – Voser, chief financial officer Simon Henry and Malcolm Brinded, the head of Upstream International.

Shell has rarely been out of the headlines this month after recent bonus deals for top bosses sparked investor fury.