The petro giant is slashing its exploration workforce by 20%
Shell $SHEL (SHEL), one of the world’s largest oil companies, is pulling back a bit from looking for the product that powers its bottom line. Reuters reports that the company will be cutting 20% of its oil-and-gas exploration workforce, the equivalent of hundreds of jobs. The move is part of an effort to save as much as $3 billion in expenses by the end of the year.
The company has been looking all over for ways to make its business less expensive. Earlier this summer, Shell announced that it was taking $2 billion in charges on its biofuels business and an Indonesian refinery it was parting ways with.
The company’s profitability has been falling after oil prices came down from highs they reached after Russia launched its full-scale invasion of Ukraine in 2022. On an earnings call earlier this month, CEO Wael Sawan said that the company was looking to do a bit more belt-tightening.
“As we drive competitiveness, that team is really looking at how do we hone in on the costs that actually add value and really sharpening their focus on that, and you’re again seeing the results of that come through,” he said.
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