Employment Law

Shell Layoffs: 20% workforce reduction targets Exploration, Development divisions

A photo of an oil rig in front of a sunset. (Photo: Zbynek Burival / Unsplash)

What’s Happening at Shell?

Shell, the global oil and gas giant, is planning to reduce its workforce by 20%, with significant impacts to oil and gas exploration staff, according to a report by Reuters.

The company’s exploration, development, and subsurface divisions will undergo major restructuring, with layoffs anticipated to primarily affect Shell’s offices in Houston and The Hague. While the layoffs are expected to have less of an impact, Shell’s offices in Britain may also experience some reductions.

Official Statements and Context

The workforce reduction is part of a larger strategic effort led by Shell’s new CEO, Wael Sawan, aimed at creating more shareholder value and simplifying the company’s operations. This restructuring plan includes:

  • A cost-cutting target of $2-$3 billion by 2025.
  • Divestiture of major assets, including the Deer Park Refinery (sold to Pemex in 2022) and the Mobile refinery (sold to Vertex Energy in 2022).
  • A reduced focus on investments in the renewables sector, despite market pressures.

Layoffs in Canada

It remains unclear exactly how many Shell employees in Canada will lose their job as a result of these layoffs.

Your Rights

In Canada, non-unionized employees at Shell are owed full severance pay when they lose their jobs due to downsizing, corporate restructuring, or the closure of the business.

This applies to individuals working in any capacity — full-time, part-time, hourly, or potentially even independent contractors — in Ontario, Alberta, and British Columbia.

Severance is the compensation provided to non-unionized workers in Canada by their employer when they are terminated without cause, and can be as much as 24 months’ paydepending on a number of factors.


WATCH: Employment lawyer Lior Samfiru explains why you are still owed severance if you have been downsized on an episode of the Employment Law Show.


Severance offers and deadlines

Before accepting a severance offer, double-check the amount using our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

In addition to your salary, make sure to factor in any other elements of your compensation (i.e. bonuses, commission, etc.).

If your employer’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should contact an experienced employment lawyer at Samfiru Tumarkin LLP.

Non-unionized employees in Canada have up to two years from the date of their dismissal to pursue proper severance pay. An employer’s deadline to sign back a severance offer is not legally enforceable or binding.

LEARN MORE
Severance pay for provincially regulated employees
Rights to severance during mass layoffs
Severance entitlements in a recession

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Major layoffs continue

The job cuts come amid a flurry of layoffs in 2024.

Big names, including Wells Fargo, Intuit, Goldman Sachs, UiPath, Dyson, Vancity, Stifel, SAP Canada, Netflix, AmDocs, EXL Service, Best Buy, Relic Entertainment, Ubisoft, Intel, Amazon, and Telus, have pulled out the axe as they continue to navigate challenging economic conditions.

SEE ALSO
Shell to lay off 20% of deals division, part of restructuring
Walmart Canada cuts jobs amid restructuring, shift to Spark: Reports
Where are layoffs happening in Canada?

Lost your job? Talk to an employment lawyer

If you have been fired or let go for any reason, contact the experienced employment law team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized individuals.

In addition to severance package negotiations, we can assist you on a broad range of employment matters, including:

If you are a non-unionized employee who needs help with a workplace issue, contact us or call 1-855-821-5900 to get the advice you need and the compensation you deserve.

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Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.

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Consult with Samfiru Tumarkin LLP. We are one of Canada's most experienced and trusted employment, labour and disability law firms. Take advantage of our years of experience and success in the courtroom and at the negotiating table.

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