As part of its strategy to enhance performance and improve investor return, the UK’s oil major Shell has commenced the cutting of hundreds of jobs, including roles within its low-carbon solutions unit.
Leadership cited sources to have gathered that, the first phase of job cuts at Shell has affected its low-carbon solutions unit, with staff receiving details this week following an internal announcement in December 2023. Earlier this week, Shell agreed to the sale of Shell Petroleum Development Company of Nigeria (SPDC) in a transaction valued at $2.4 billion (£1.89 billion).
The company was sold to Renaissance, a consortium comprising five companies: ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin. More reductions are expected in departments such as projects and technology. The corporate affairs division has also been informed, according to sources.
Shell aims to focus on discipline, performance, and simplification, to create more value with less emissions. “Achieving those reductions will require portfolio high grading, new efficiencies and a leaner overall organization.” said a spokesperson.
Wael Sawan, Shell’s CEO is committed to working on measures to improve the company’s performance as well as shareholder value. The company is reportedly working to narrow the valuation disparity with US counterparts such as ExxonMobil and Chevron through asset sales and scaling back on lower-yield investments, some of which are in the renewable energy sector.
At the close of 2022, Shell’s workforce numbered approximately 93,000 on a full and part-time basis globally, more than twice the size of Chevron’s staff, even though Chevron boasts a market value that is 34 per cent greater, Leadership gathered.