Shell Plc plans to reduce its workforce by approximately 20% in certain divisions related to oil and gas exploration and development, as Chief Executive Officer Wael Sawan seeks to enhance efficiency and profitability.
This decision follows previous reductions within the company's deal-making team, as well as in low-carbon solutions, chemicals, and offshore wind sectors. The layoffs are expected to impact the exploration, strategy, and portfolio segments, along with the development, subsurface, and wells divisions, according to a source familiar with the situation.
These proposed changes are subject to discussions with employee representative groups, the source added.
A company spokesperson stated via email, "Shell is committed to generating greater value while minimizing emissions by emphasizing performance, discipline, and simplification throughout the organization."
Reuters was the first to report on the job cuts.
Shell companies and investments have been instrumental in advancing onshore, shallow, and deep water oil exploration and production. Additionally, Shell has led the way in gas development, supplying gas to both domestic consumers and export markets for more than four decades.