Oil and gas giant Shell plans to cut 20% of its workforce in two of the company’s oil and gas exploration divisions, according to multiple reports.
When reached out for comment, Shell’s spokesperson said the move is part of efforts to improve efficiency and reach the company’s goal of reducing its costs by up to $3 billion by 2025.
“Shell aims to create more value with less emissions by focusing on performance, discipline, and simplification across the business. That includes delivering structural operating cost reductions of $2-3 billion by the end of 2025,” the company spokesperson said.
Cutting down expenses is one of CEO Wael Sawan’s biggest goals. When he took over in 2023, Sawan promised to increase the company’s profitability and announced the previously mentioned $3 billion cost reduction goal by next year. One of the ways he has been looking to achieve that goal was through job cuts.
Reportedly, some of the job cuts will be part of Shell’s efforts to combine some of its technical departments. The finer details regarding the layoffs are currently being negotiated with the workers’ representatives.
The job cuts will have a global scope, according to Reuters. The staffers in the company’s offices in Houston, Texas, and The Hague, Netherlands, are expected to be particularly affected by the decision.