Optimization process at Shell: Massive job cuts planned

Shell plans to reduce its workforce in oil and gas exploration as well as in the development department by 20 percent. This is part of the broad cost-cutting measures of the new CEO Wael Sawan, who has been in office since January 2023. The cuts affect a division which accounted for more than a third of the company's total profits in 2023. A Shell spokesperson emphasized that the goal is to create more value through performance, discipline, and simplification while reducing emissions. By the end of 2025, the company aims for structural operating cost savings of two to three billion USD. According to internal company sources, the restructuring will cost hundreds of jobs worldwide, particularly affecting the offices in the UK and the Netherlands. These measures follow previous cuts in the area of renewable energy and low-carbon technologies. Interestingly, BP predicted that global oil demand could reach its peak as early as next year. This is happening against the backdrop of global investments of two trillion USD in clean energy, as reported by the International Energy Agency—a figure nearly twice as much as that for fossil fuels. In recent months, Shell has scaled back both its production of offshore wind, solar energy, and hydrogen, as well as its retail energy sales, refineries, and a portion of its oil and gas production.