Oil giant Shell to cut hundreds of jobs

LONDON, United Kingdom (AFP) – British energy giant Shell plans to cut hundreds of jobs at its oil and gas exploration unit as part of a cost-cutting plan announced last year, people familiar with the matter said on Friday.

The cuts will affect two units specialising in the exploration and development of hydrocarbon extraction projects, with staff numbers set to fall by 20%, sources told AFP.

Offices in the United States and the Netherlands would be most affected, but details of the plan still needed to be negotiated with unions, the person added.

Shell announced in June 2023 that it intends to implement “structural reductions in operating costs of $2 billion to $3 billion by the end of 2025.”

A Shell spokesman told AFP that achieving those cuts would require “new efficiencies and a leaner overall organisation”, but he did not confirm the job cuts.

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Shell said earlier this month its first-half net profit fell 8 percent due to lower gasoline prices and write-offs.

Lower operating costs and higher hydrocarbon production helped deliver the performance despite lower margins.

Shell, like its compatriot BP, has already given up some Climate goals In recent months, the company has placed a greater emphasis on oil and gas in an effort to boost profits, to the dismay of environmentalists.