Shell axing contractors as it moves to cut costs - report

According to The Standard, "scores" of contracts have either been cut short or are not being renewed, as the oil major seeks to remove "hundreds" of contractors from its workforce.

The newspaper said the majority of affected contractors worked in IT. One unnamed worker was quoted as saying: "The morale inside the IT teams feels low right now."

In a statement, the blue chip said: "Contractors continue to provide important IT skills to Shell as valued people in our teams. It is usual for the numbers of contractors to go up and down in line with business need.

"In 2023 we have needed fewer contractors overall to support IT functions. A small proportion of these reductions have been in the UK."

Wael Sawan took over as chief executive at the start of 2023, replacing Ben van Beurden, who had held the role since 2014.

Speaking at a capital markets day in New York in June, Sawan - a 25-year company veteran - reiterated Shell’s commitment to its fossil fuel divisions and detailed plans to invest $40bn into oil and gas production.

He also told investors he would cut operating costs by $2bn-$3bn by the end of 2025 and boost shareholder returns as part of a "ruthless focus on performance, discipline and simplification".