British energy giant Shell is planning to cut hundreds of jobs from its oil and gas exploration division as part of a broader cost-cutting initiative announced last year, according to a source familiar with the matter.
The job cuts will target two units specializing in hydrocarbon exploration and development, with a 20% workforce reduction expected. Offices in the United States and the Netherlands will be the most impacted, though the plan remains under discussion with unions.
Shell revealed in June 2023 its goal to achieve “structural operating cost reductions of $2 billion to $3 billion by the end of 2025.” A Shell spokesperson emphasized the need for “new efficiencies and a leaner overall organization” but did not confirm the job cuts.
The company recently reported an 8% drop in net profit for the first half of the year due to weaker gas prices and write-offs, though lower operating costs and increased hydrocarbon production helped mitigate the decline.
Shell, along with BP, has shifted some of its climate targets to prioritize oil and gas, drawing criticism from environmental groups.
