British energy giant Shell plans to cut hundreds of jobs in its oil and gas exploration division as part of a cost-cutting program announced last year.
The cuts will affect two units specializing in the exploration and development of hydrocarbon projects, with the number of employees to be reduced by 20%, AFP reported.
Offices in the United States and the Netherlands will be most affected, the person added, but the details of the plan are subject to negotiations with unions.
In June 2023, Shell said it intended to implement "structural reductions in operating costs of $2 billion to $3 billion by the end of 2025."
Achieving those cuts will require "new efficiencies and a more structured overall organization", a Shell spokesman said.
Earlier this month, Shell said net profit fell 8 percent in the first half due to lower gas prices and write-downs.
Despite the fall in margins, the result was helped by lower operating costs and higher hydrocarbon production volumes.
In recent months, Shell, like its compatriot BP, has backed away from some climate targets to the consternation of environmentalists, putting more emphasis on oil and gas to boost profits. | BGNES
