Shell Layoffs: Impact on Workforce
What is the reason for Shell’s layoff?
Shell, a leading oil and energy corporation with U.S. headquarters in Houston, is reportedly preparing to reduce its upstream workforce by 20%, according to recent reports. The restructuring, part of a broader cost-saving initiative, will affect the company’s global workforce, particularly in its offices in Houston, The Hague, and, to a lesser extent, the UK. It is unclear if this restructure will impact employees in Canada.
Sources indicate that Shell plans to downsize its exploration, wells development, and subsurface units, resulting in significant job cuts. The exact number of layoffs has yet to be confirmed, as discussions with employee representatives are ongoing.
Shell, Houston’s second-largest energy employer with around 9,000 employees, has not responded to requests for comment on the anticipated layoffs. This move aligns with the company’s strategic shift under new CEO Wael Sawan, who is focused on enhancing performance through cost discipline and operational simplification. Shell has committed to reducing structural operating costs by $2-3 billion by the end of 2025.
How Is Shell Adapting to the Energy Transition?
In line with these goals, Shell has recently divested from several sectors, including refineries and renewables. Notably, it sold a pipeline and terminal system near the Houston Ship Channel and divested its interest in the Deer Park Refinery to Pemex for $596 million in 2022. Additionally, Shell sold its refinery in Mobile, Alabama, to Vertex Energy Inc.
As Shell navigates the energy transition, it continues to pivot away from traditional oil and gas operations. The company recently published its Energy Transition Strategy 2024 report, outlining plans to reduce emissions and expand its electric vehicle (EV) services. Shell aims to cut customer carbon emissions by 25-30% by 2030, with a long-term goal of becoming a net-zero emissions energy business by 2050.
Job Loss as a Shell Employee? Here’s What You Need to Know
If you’re a non-unionized Shell employee in Canada facing job loss due to restructuring or downsizing, you may be eligible for a full severance package. Severance pay varies based on your specific situation and can extend up to 24 months’ worth of pay. In Ontario, mass layoffs involving 50 or more employees could also result in enhanced severance compensation.
At Whitten & Lublin, our team of experienced employment lawyers is ready to guide you through this challenging time. We’ll help you understand your legal rights and ensure you receive the severance pay you’re entitled to. If you’ve been affected by recent layoffs in Canada, contact us for a consultation through our online portal or by calling (416) 640-2667.