Connect with us

Hi, what are you looking for?

Oil and Gas

Shell to Slash Expenditure by $3Bn

Shell

Shell Plc, oil giant is now more serious towards cutting expenditure and becoming more competitive through applying drastic job reduction measures.

Shell has begun cutting jobs beyond previously announced reductions in its low-carbon division as Wael Sawan, CEO seeks to trim costs and be more competitive with U.S. rivals, people familiar with the matter said.

Roles are being eliminated on a division-by-division basis, with those affected offered options including redundancy packages or applying for jobs elsewhere in the company, according to the people, who asked not to be identified discussing non-public information.

Shell declined to comment on the number of jobs involved.

The company laid out a plan to investors in June to reduce “structural costs” by as much as $3 billion by the end of 2025.

“Achieving those reductions will require portfolio high grading, new efficiencies and a leaner overall organization,” Shell said in an email.

“While no formal targets exist, we will continuously look to right-size the activities that deliver the most value.”

Sawan pledged to be “ruthless” in improving Shell’s performance after taking the CEO job earlier this year. The former divisional natural gas chief is making a concerted effort to close the stock’s valuation gap with U.S. rivals Exxon Mobil Corp. and Chevron Corp. by selling assets and reducing low-return investments, including some in clean energy.

Shell employed about 93,000 globally on a full and part-time basis at the end of 2022, more than double that of Chevron, despite the US company having a market value 34 per cent higher.

In October, Shell said 200 positions in its Low Carbon Solutions unit would be cut in 2024, about 15 per cent of the total.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

ad

You May Also Like

Tech

The maker of ChatGPT on Thursday unveiled its next leap into generative artificial intelligence with a tool that instantly makes short videos in response...

News

Federal Airports Authority of Nigeria, FAAN, has reopened the 3.9km 18R/36L runway at Murtala Muhammed International Airport, MMA, Lagos. The runway, closed in April...

Tech

Sophos announced Thursday that Kris Hagerman has stepped down as CEO of the cybersecurity giant after more than a decade, and a top executive...

News

Enugu State High Court sitting in Enugu, the state capital, has found a man, Okolie Chigozie Michael, 32, guilty of killing his son. He...