Energy giant Shell is planning to cut 20% of its workforce in two oil and gas exploration divisions as the firm continues to take cost-saving measures following cuts in renewable and low-carbon businesses, according to reports.
The restructuring will see hundreds of jobs lost around the world, including in the UK. Cuts will also be felt in the Netherlands and in Houston, Reuters reports.
Around a fifth of the jobs in units responsible for Shell's exploration strategy and for developing its oil and gas finds will be lost.
It's unclear if and how the job losses will impact Shell's operations in Aberdeen.
It's reported that plans are currently being negotiated with employees and are not final.
A company spokesman wouldn't comment on any reduction figures, however the company said in a statement: "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."
Upstream - Shell’s oil and gas production division, which includes the exploration and well development units - accounted for over a third of the firm's $28.25bn (£21.44bn) in adjusted earnings in 2023.
Wael Sawan, who only took over as CEO in January last year, has vowed to boost profitability and narrow a wide gap in Shell's shares valuation in comparison with other US rivals.
At the start of August, Mr Sawan said he has overseen $1.7bn (£1.29bn) of cost savings and will continue to "simplify the way the organisation works".
That includes scaling back operations in offshore wind, solar and hydrogen, sold retail power businesses, refineries and some oil and gas production.
The company has also weakened or scrapped various carbon reduction targets due to expectations for strong gas demand and uncertainty in the transition to renewables.
Mr Sawan has improved global investor confidence this year, with Shell's shares gaining over 8% and outperforming rivals.