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Shell (SHEL) Initiates Further Job Cuts in Cost-Cutting Effort
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Shell plc (SHEL - Free Report) has initiated a round of job cuts extending beyond the previously announced reductions within its low-carbon division, as reported by Bloomberg News on Thursday, citing sources familiar with the matter. The move came as part of the company's broader strategy to achieve up to $3 billion in savings by the end of 2025.
According to the report, the job cuts are being executed on a division-by-division basis, and the affected employees are being presented with various options, including redundancy packages or the opportunity to apply for positions in other parts of the company.
A spokesperson for Shell emphasized that achieving the desired reductions would involve portfolio high grading, the implementation of new efficiencies and an overall leaner organizational structure. The spokesperson added that although there are no specific targets in place, SHEL will consistently assess and adjust activities to optimize value delivery.
The specifics of the job cuts, including the number of employees and divisions affected, have not been officially disclosed by Shell.
This development followed Shell's announcement in October, where the company revealed its intention to reduce its workforce by approximately 15% in the low-carbon solutions division. The plan also involved a scaling back of its hydrogen business. These measures were part of CEO Wael Sawan's strategy to enhance profitability.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape with its $4.5-billion revolver maturing in fiscal 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
Murphy USA is a low-cost, high-volume fuel seller, whose stations are located near Walmart supercenters. This enables it to attract significantly more transactions than its peers. MUSA’s sourcing infrastructure is another key competitive advantage.
The company’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 7.04%.
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Shell (SHEL) Initiates Further Job Cuts in Cost-Cutting Effort
Shell plc (SHEL - Free Report) has initiated a round of job cuts extending beyond the previously announced reductions within its low-carbon division, as reported by Bloomberg News on Thursday, citing sources familiar with the matter. The move came as part of the company's broader strategy to achieve up to $3 billion in savings by the end of 2025.
According to the report, the job cuts are being executed on a division-by-division basis, and the affected employees are being presented with various options, including redundancy packages or the opportunity to apply for positions in other parts of the company.
A spokesperson for Shell emphasized that achieving the desired reductions would involve portfolio high grading, the implementation of new efficiencies and an overall leaner organizational structure. The spokesperson added that although there are no specific targets in place, SHEL will consistently assess and adjust activities to optimize value delivery.
The specifics of the job cuts, including the number of employees and divisions affected, have not been officially disclosed by Shell.
This development followed Shell's announcement in October, where the company revealed its intention to reduce its workforce by approximately 15% in the low-carbon solutions division. The plan also involved a scaling back of its hydrogen business. These measures were part of CEO Wael Sawan's strategy to enhance profitability.
Zacks Rank & Key Picks
Shell currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are The Williams Companies, Inc. (WMB - Free Report) , Sunoco LP (SUN - Free Report) and Murphy USA, Inc. (MUSA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Williams Companies is well-positioned to capitalize on the anticipated substantial long-term growth in U.S. natural gas demand, thanks to its impressive portfolio of large-scale projects that create significant value. The company’s debt maturity profile is in good shape with its $4.5-billion revolver maturing in fiscal 2023.
WMB’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.68%.
Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow.
SUN’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 28.33%.
Murphy USA is a low-cost, high-volume fuel seller, whose stations are located near Walmart supercenters. This enables it to attract significantly more transactions than its peers. MUSA’s sourcing infrastructure is another key competitive advantage.
The company’s earnings beat estimates in two of the trailing four quarters and missed twice, delivering an average surprise of 7.04%.