Shell to exit 35 per cent petrol stations worldwide, cut 2,000 jobs
17 Mar 2010
Royal Dutch Shell has announced sweeping changes by outlining plans to raise performance and reduce costs in a bid to save $1-billion and bring itself to a surplus cash flow position by 2012.
The multinational petroleum company of Dutch and British origins said that it would increase its oil production by 11 per cent from 2009 levels over the next two years, exit 35 per cent of its petrol pumps worldwide, reduce refining capacity by 15 per cent, cut around 2,000 jobs by end of 2011, that would save $1billion this year.
It also plans to sell non-core assets worth $1-$3 billion a year.
Peter Voser, CEO of the Netherlands-based oil major said, "The company had become too complicated and slower to respond than we'd like. So we are sharpening up''
With a focus on operating performance, asset performance and operating costs, Shell will undertake to sell assets worth $1-3 billion a year as it seeks to exits from non-core positions across the company.
Voser feels that the company's petrol retailing and marketing operation, which has a presence in more than 100 countries, are too scattered and not focused enough on profitability and growth and hence plans to exit from 35 per cent of its petrol station worldwide and remain only in 30 of the 90 countries in which it operates.
