Shell, the British energy giant, plans to remove hundreds of jobs from its oil and gas exploration division as part of a cost-cutting initiative announced last year, according to a source familiar with the situation.
The cuts will affect two units that specialize in the discovery and development of hydrocarbon extraction projects, reducing their workforces by 20%, according to an AFP source.
The insider noted that offices in the United States and the Netherlands will be the most affected, although the details of the plan are still being worked out with unions.
Shell declared in June 2023 that it planned to make “structural operating cost reductions of $2 billion to $3 billion by the end of 2025”.
A Shell representative told AFP that achieving those reductions will need “new efficiencies and a leaner overall organisation,” but did not confirm the job cutbacks.
Shell said earlier this month that net profit declined 8% in the first half owing to lower gas prices and write-offs.
Despite the drop in margins, the outcome was aided by lower operating costs and increased hydrocarbon production.
Shell, like its rival BP, has backtracked on several climate commitments in recent months, much to the dismay of environmentalists, focusing more on oil and gas to generate profits.