Friday, 19th April, 2024
Friday, 19th April, 2024

Shell to freeze workers’ salaries

Royal Dutch Shell will not raise the salaries of most of its employees this year, according to people familiar with the matter, as it shows the need to save cash in the company’s supervision.

In a note addressed to employees, Chief Executive Officer Ben Van Burden wrote that the company had previously said it had low expectations for employee pay increases, but most would not raise salaries this year.

Shell is embarking on one of the largest restructures in its history as it comes from a century-long structure that prioritizes oil and gas production. The Netherlands, the United Kingdom, and Malaysia have already announced that they will lose about 9,000 people in the next two years. Van Burden said last week that volunteer unnecessary second-round work is also underway.

He reiterated that no bonus would be paid to anyone in the organization, the public said. In July, Chief Financial Officer Jessica Uhl told analysts that stopping paying bonuses would save the company about $1 billion. If Van Burden’s note does not say whether traders’ bonuses, which can often be hefty, will be affected.

A Shell spokesman declined to comment.

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