British energy giant Shell plans to cut hundreds of jobs from its oil and gas exploration division as part of a cost-cutting program announced last year.
Gatekeepers News reports that the cuts will affect two units specializing in exploration and development of hydrocarbon extraction projects, with their workforces set to be reduced by 20%, according to a person familiar with the matter.
The offices in the United States and the Netherlands will be most affected, but the details of the plan are subject to talks with unions. Shell announced in June 2023 that it intended to implement “structural operating cost reductions of $2 billion to $3 billion by the end of 2025”.
Achieving those reductions will require “new efficiencies and a leaner overall organisation,” a Shell spokesperson said, without confirming the job cuts.
The move comes as Shell reported an 8% drop in net profit in the first half of the year due to weaker gas prices and write-offs. Despite the fall in margins, the result was helped by lower operating costs and higher hydrocarbon production volumes.
Shell, like its compatriot BP, has backtracked on some climate targets in recent months, putting more emphasis on oil and gas to boost its profits, much to the dismay of environmental campaigners.
