Shell PLC (LSE:SHEL, NYSE:SHEL) is to axe 20% of its exploration and development workforce as chief executive Wael Sawan accelerates his cost-cutting plans, according to Reuters.
Hundreds of jobs will be cut around with Britain and the Netherlands to be hit hardest said the report.
Reserves replacement is a key expense for giant oil and gas companies but like other majors, Shell has indicated it is moving away from Europe and Britain in particular due to tax and green pressures.
The UK government has said it will raise the windfall tax by 3%, making it an effective 78% profit tax, while also planning to cut reliefs for new field development.
Earlier today, the government said it would no longer defend the decision to award Shell a licence to develop the Jackdaw field, east of Aberdeen, against an environmentalist legal challenge.
In a statement, Shell said: "Shell aims to create more value with less emissions by focusing on performance, discipline and simplification across the business.
“That includes delivering structural operating cost reductions of $2-3 billion by the end of 2025."
Shell has also scaled back operations in offshore wind, solar and hydrogen, sold retail power businesses, refineries and some oil and gas production, including in Nigeria, while its exploration focus has switched to Africa and Asia.