Shell Malaysia will cut approximately 1,300 positions from its upstream division over the next two years. The decision came on the back of a transformation programme for its upstream division.
Currently, Shell Malaysia’s total workforce is approximately 6,500 staff. Through the programme, it aims to focus improving efficiency and removing complexity to become a more agile and competitive company.
“We are strengthening our organisation by prioritising productivity and efficiency, without compromising on safety and reliability. We will emerge from this process as a more nimble, resilient and competitive player in the Malaysian oil and gas industry,” Iain Lo, chairman of Shell Malaysia, said.
Lo explained the company has made adjustments in its upstream portfolio to drive greater efficiency in its operations. “Regretfully, these have resulted in an unavoidable impact on staff. I wish to reiterate our commitment to treat our people with respect and care in line with the Shell Global People Principles, and help them transition from their current positions,” he added.
Malaysia is one of the very few countries in the Shell Group where all the major lines of Shell’s business, from the upstream to the downstream as well as business services, are present.
In the upstream, Shell Malaysia’s Gumusut-Kakap platform is the company’s first deep-water floating production system in Malaysia. Shell’s midstream presence in Malaysia has served as an important innovation hub for the Group. In the downstream, Shell continues to extend its leadership as the fuels and lubricants brand of choice.
Most recently, through its ‘Welcome To Shell’ initiative, the company embarked on a three-year business and culture change that will see its retail sites nationwide become leaders in hospitality and customer service on Malaysian roads.
“We have a strategy going forward, anchored on our scale and competitiveness in the upstream and leveraging our leading brand in the downstream,” Lo said.
A+M has reached out to Shell Malaysia for more comments.