Shell Oil to Cut 20% of Jobs, 740 Workers, Amid Low Oil Prices

Strategic Insights -

Shell Oil Co. will eliminate 20 percent of the jobs in its oil exploration and production unit, about 740 workers, due to low oil prices that have cut profits. The move comes after Shell Oil's profits fell 50 percent in the first half of the year as oil prices tumbled to the lowest levels in more than a decade. Royal Dutch, the world's largest publicly traded oil company, has been criticized for lagging competitors such as Exxon Corp. and British Petroleum in cutting costs and will face pressure to cut even more workers, analysts said.

Key Takeaways:

  • Shell Oil Co. will cut 20% of its jobs in the oil exploration and production unit, affecting around 740 workers.
  • The move is a response to low oil prices that have led to a 50% decline in profits in the first half of the year.
  • Royal Dutch, the world's largest publicly traded oil company, has been criticized for inefficiencies and will face pressure to cut costs further.
  • Analysts predict that the move by Shell Oil is just the beginning, with the company expected to cut more workers in the future.
  • The oil industry is experiencing a significant downturn, with prices at their lowest levels in over a decade.
  • Other major oil companies, such as Exxon Corp. and British Petroleum, have been able to cut costs more effectively than Royal Dutch.

Statistics:

  • 740 workers will be affected by the job cuts at Shell Oil Co.
  • Shell Oil's profits fell 50% in the first half of the year due to low oil prices.
  • Oil prices are at their lowest levels in over a decade.
  • Royal Dutch has been criticized for inefficiencies and will face pressure to cut costs further.
  • The move by Shell Oil is just the beginning, with analysts predicting more job cuts in the future for the company.

Sources:

  • "Houston -- Shell Oil Co., the U.S. arm of the Royal Dutch/Shell Group, will eliminate 20 percent of the jobs in its oil exploration and production unit, or about 740 workers, as low oil prices cut profits."
  • Shell Oil Co.
  • Analyst Fadel Gheit, Fahnestock & Co.
  • Royal Dutch/Shell Group.