Shell Considers Job Cuts In Oil And Gas Workforce: Report
Portfolio Pulse from Lekha Gupta
Shell plans to cut 20% of its oil and gas workforce, impacting offices in Houston, The Hague, and Britain. This is part of a strategy to reduce operating costs by $2-3 billion by 2025. Shell's recent financial performance has been strong, with Q2 revenue surpassing expectations.
August 29, 2024 | 5:46 pm
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NEUTRAL IMPACT
VanEck Natural Resources ETF (HAP) includes Shell, which is undergoing significant workforce reductions to cut costs. This could affect the ETF's performance depending on Shell's future financial results.
HAP includes Shell, and while Shell's restructuring could lead to cost savings, the direct impact on HAP is limited. The ETF's performance will depend on Shell's future financial results.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Investors can gain exposure to Shell through the Macquarie Energy Transition ETF (PWER), which may be indirectly affected by Shell's workforce reduction and cost-cutting measures.
PWER provides exposure to Shell, and while Shell's cost-cutting measures could improve its financial health, the direct impact on PWER is limited.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Shell is planning a 20% reduction in its oil and gas workforce as part of a cost-cutting strategy. This move is expected to impact its global offices, including Houston and The Hague. Despite these cuts, Shell's Q2 revenue exceeded expectations.
The workforce reduction is part of a broader strategy to cut costs, which could improve profitability. However, the impact on stock price is neutral in the short term as the company has shown strong financial performance recently.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100