British energy giant Shell is planning to eliminate hundreds of jobs from its oil and gas exploration division as part of a sweeping cost-cutting initiative first announced in 2023.
The planned reductions will impact two units focused on hydrocarbon extraction projects, with an anticipated 20 percent cut in their workforces. The job cuts are expected to be most significant in the company’s offices in the United States and the Netherlands. However, the final details are still being negotiated with unions.
In June 2023, Shell outlined its intention to achieve structural operating cost reductions of between $2 billion and $3 billion by the end of 2025. A spokesperson for Shell confirmed the need for new efficiencies and a leaner overall organization but did not directly confirm the job cuts.
READ ALSO : Shell agrees to sell SPDC, announces plan to exit Nigeria
This announcement follows Shell’s recent report of an eight percent drop in net profit for the first half of the year, attributed to weaker gas prices and write-offs. Despite this decline, the company saw some relief from lower operating costs and increased hydrocarbon production volumes.
In recent months, Shell has also faced criticism from environmental groups for rolling back on certain climate targets, shifting more focus into oil and gas to sustain profitability, a move that has sparked concern among climate advocates.
Credible News.ng
