Shell Plans Job Cuts in Oil Division

Shell plans to lay off approximately 20% of its workforce in the oil and gas exploration and development divisions as part of a broader cost-cutting initiative aimed at achieving $2 billion to $3 billion in savings by 2025. The job cuts will predominantly impact offices in the United States and the Netherlands, affecting roles such as geologists and oil well designers. This restructuring is part of CEO Wael Sawan's strategy to enhance efficiency and profitability amid declining gas prices and increased operational costs. Shell has already realized $1.7 billion in savings since Sawan's appointment in January 2023 and has previously reduced staff in other divisions. The layoffs are pending discussions with employee representatives, reflecting compliance with labor laws. Despite these challenges, Shell's upstream division remains crucial, contributing significantly to the company's earnings.