Shell plc SHEL, the oil and gas giant, is planning to cut down its workforce by 20%. The job cuts are anticipated to affect the oil and gas exploration staff, per a report by Reuters. The report also mentioned that the company’s exploration and development and subsurface divisions will undergo restructuring and the effect of the layoffs will be felt in Shell’s offices in Houston and The Hague. The layoffs may also affect its offices across Britain, albeit to a lower extent.
After Shell’s new CEO, Wael Sawan, took office, the company has been focusing on creating more value for shareholders by improving its performance and simplifying its business operations. A key part of the strategy includes cutting costs by $2-$3 billion by the end of 2025.
Shell has divested several of its refineries and pulled back from investments in the renewables sector. In 2022, the company sold its Deer Park Refinery to Pemex and its refinery in Mobile, AL, to Vertex Energy.
Impact on Houston
Houston's employment landscape has been heavily dominated by the oil and gas industry for decades. Shell was the second largest employer among energy players in Houston. The company employed an estimated 9,000 workers in the region. However, the layoffs have not yet been confirmed, per Reuters.