Shell's new CEO's restructuring plans put at stake 24,000 jobs

In the wake of plunging oil prices, British energy group Royal Dutch Shell's new chief executive announced a major restructuring on Wednesday, which will save the company billions of dollars, but put nearly 24,000 jobs at risk.

Peter VoserPeter Voser, who has been the chief financial officer of the company for five years will take over from Jeroen van der Veer as CEO on 1 July 2009, has wasted no time in announcing drastic changes, being well aware of the company's financial intricacies.

The multinational petroleum company of Dutch and British origins, said that its Upstream activities, which are currently managed in three separate organisations - exploration and production, gas and power, and oil sands, will now consist of two businesses, 'upstream Americas' covering North and South America, and 'upstream international' covering the rest of the world.

It means that from 1 July all the company's exploration and production, gas and power and oil sands units will be merged into two new divisions.

Changes have also been made in the downstream business, where in addition to the refining, marketing and chemicals businesses, the downstream portfolio will be expanded to include trading and alternative energy activities in Shell, excluding wind power, which will become part of upstream.

Peter Voser said, "this new structure will increase accountability in the company, and improve Shell's performance on delivering new projects and developing new technologies."