By Ologeh Joseph Chibu
Oil giant Shell is set to significant sack many workers, extending to the team responsible for mergers and acquisitions (M&A).
According to sources familiar with the matter who spoke to Bloomberg, Shell is planning to eliminate approximately 20 percent of the positions within its M&A unit, which comprises several hundred employees.
Shell has been vocal about its efforts to streamline operations and achieve greater cost efficiency by reducing its workforce. With over 90,000 employees in 2022, Shell has been actively seeking ways to create a leaner organization.
Following previous job cuts in its low-carbon energy division, Shell has now turned its attention to other departments, including the M&A team. Employees in this unit have been informed to anticipate a significant number of job losses, with specific details expected to be communicated in April.
Last year, Shell announced plans to reduce its workforce by 15 percent within its Low Carbon Solutions business, focusing on more profitable ventures within the oil and gas sector while scaling back certain green energy initiatives.
In December 2023, Shell internally disclosed a broader strategy for job cuts across various departments. The company has already initiated hundreds of layoffs in early 2024, aligning with its goal of simplifying operations and enhancing value creation.
According to Bloomberg’s sources, the initial job cuts will primarily affect positions within the low-carbon business, followed by reductions in the corporate affairs division and project and technology departments.
A spokesperson for Shell emphasized the company’s commitment to creating value while reducing emissions through improved performance, discipline, and simplification. Achieving these objectives will involve optimizing the portfolio, implementing efficiencies, and establishing a more streamlined organizational structure.
A representative for the oil giant informed Bloomberg, “Shell aims to create more value with less emissions by focusing on performance, discipline and simplification”.
Furthermore added, “Achieving those reductions will require portfolio high grading, new efficiencies and a leaner overall organization”.
