Shell to cut hundreds of jobs in its oil and gas division to cut costs
Shell plans to cut hundreds of jobs worldwide.
The energy giant wants to reduce its workforce for oil and gas exploration and development by 20 percent compared to 2022. This measure will have consequences for countries such as the United Kingdom, the US, the Netherlands and Brazil.
It is part of Shell’s wider strategy to cut between £1.5 billion and £2.3 billion across the business by the end of next year.
Job cuts: Shell plans to reduce its oil and gas exploration and development workforce by 20% by 2022
The latest proposal will lead to workforce reductions at two companies within the group’s upstream division.
The unit, which explores for and extracts crude oil and natural gas in countries including the UK, Nigeria and the Gulf of Mexico, accounted for more than a third of Shell’s £21bn profit last year.
Staff consultation will take place before final decisions are made.
A Shell spokesperson said the company “aims to create more value with lower emissions by focusing on performance, discipline and simplification across its operations.”
Under the leadership of Wael Sawan, who became CEO in January last year, the group is focusing on its most profitable businesses and catching up with more valuable US rivals.
Shell has also watered down some of its green pledges for the end of the decade, while pledging to invest more in gas fields in the UK North Sea.
Earlier this month, the group announced second-quarter profit fell from £6 billion to £4.9 billion due to lower oil and gas prices.
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