Image courtesy of Shell/Flickr.

Royal Dutch Shell Malaysia said Tuesday it will cut 1,300 jobs over the next two years as it reorganizes its upstream division.

The company said the reorganization plan will focus on improving efficiency and “removing complexity” to make it more agile and competitive.

Shell Malaysia currently employees 6,500 people.

“This is certainly a very difficult decision to make. We have made adjustments in our upstream portfolio and we will drive greater efficiency in our operations. Regretfully, these have resulted in an unavoidable impact on staff,” Shell Malaysia chairman Iain Lo said.

The company added that it will help staffers transition from current positions and offer a redundancy package, full staff benefits and prorated performance bonus within the notification period.

Shell Malaysia will also set up dedicated mobility centers in Miri, Labuan, Kota Kinabalu and Kuala Lumpur to support staff with training and financial planning advice.

“I want to be unequivocal in saying that Shell remains confident of its future in Malaysia,” Lo added.

Shell Malaysia has invested an average of $100 million per year over the last six years and has made 11 discoveries, including discoveries in cBlocks where Shell is a partner, in the past 24 months.

Shell will celebrate 125 years of operating in Malaysia next year.

In July, Royal Dutch Shell said it expects to cut about 6,500 staff and direct contractor positions in 2015.


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