--- description: Shell's not alone: Chevron and ConocoPhillips are slashing jobs too. title: Here’s Why Oil Giant Shell Is Slashing Thousands of Jobs image: https://static.time.com/v3/assets/bltea6093859af6183b/blt9bcb32fc0d0b6916/69885d2ae53abafc854ded74/463255399-e1404337530458.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [Business](/section/business/) ## Business Update your preferences in [Account Settings](/account/preferences/) Close * [Shell](/tag/shell/) ## Shell Update your preferences in [Account Settings](/account/preferences/) Close # Here’s Why Oil Giant Shell Is Slashing Thousands of Jobs by [Claire Zillman / Fortune](/author/fortune/) ## Claire Zillman / Fortune Update your preferences in [Account Settings](/account/preferences/) Close Jul 30, 2015 1:19 PM CUT  by [Claire Zillman / Fortune](/author/fortune/) ## Claire Zillman / Fortune Update your preferences in [Account Settings](/account/preferences/) Close Jul 30, 2015 1:19 PM CUT There was no sugar coating on Shell’s earnings report Thursday: “Today’s oil price downturn could last for several years,” the company said. In reporting a 25% decline in net income in the second quarter, [the company said](http://www.bloomberg.com/news/articles/2015-07-30/shell-plans-to-cut-6-500-jobs-reduce-investment-by-7-billion "undefined") it would be combating the “prolonged downturn” in the oil industry by slashing 6,500 staff and contractor jobs this year and reducing capital investment by $7 billion or 20%. The company employs 94,000 worldwide. Shell’s dreary outlook on Thursday comes after its prediction in April that oil prices would return to $90 per barrel in three years. [Crude oil has slumped 50% in the last year](http://www.bloomberg.com/news/articles/2015-07-30/shell-plans-to-cut-6-500-jobs-reduce-investment-by-7-billion "undefined")—at one point hitting a six-year low. Shell isn’t alone in trying to grapple with cheap oil. This week [Chevron said it would cut 1,500 jobs](http://www.cnbc.com/2015/07/28/chevron-cutting-1500-jobs-to-help-cut-costs-by-1b.html "undefined") in an effort to cut costs by $1 billion. Likewise, [ConocoPhillips said it’s continuing layoffs](http://www.bloomberg.com/news/articles/2015-07-30/conocophillips-reports-loss-amid-push-toward-shale-in-oil-crash "undefined") as it tries to reduce spending by $1 billion over two years. Graves & Co., an energy consulting firm, [estimates that the energy sector has lost 50,000 in the past three months](http://fortune.com/2015/07/27/energy-sector-layoffs-low-oil-prices/ "undefined")—that’s on top of the 100,000 layoffs since oil prices began to tumble last fall. ### Photos From Inside North Dakota’s Oil Boom Town  A gas flare is seen at an oil well site on July 26, 2013 outside Williston, North Dakota. Gas flares are created when excess flammable gases are released by pressure release valves during the drilling for oil and natural gas. Andrew Burton—Getty Images  Ray Gerish, a floor hand for Raven Drilling, works on an oil rig drilling into the Bakken shale formation on July 28, 2013. Andrew Burton—Getty Images  An oil drilling rig is seen in an aerial view in the early morning hours of July 30, 2013 near Watford City. N.D. Andrew Burton—Getty Images  Gold plated belt buckles reading, "Rockin' the Bakken, Williston, North Dakota" are displayed at Ritter Brothers Diamond Cutters on July 24, 2013 in Williston. Andrew Burton—Getty Images  Street signs sit in front of empty lots in a new subdivision on July 24, 2013 in Williston. Andrew Burton—Getty Images  Two girls play on a four-wheeler in a new subdivision on July 24, 2013 in Williston. Andrew Burton—Getty Images  Construction workers specializing in pipe-laying grill lunch while working on a pipeline that will stream line oil production from drill sites to train yards and oil refineries on July 25, 2013 outside Watford City. Andrew Burton—Getty Images  Sections of pipe are lined up before being used to drill at Raven Drilling's oil rig on July 28, 2013 outside Watford City. Andrew Burton—Getty Images  Russell Girsh, a floor hand for Raven Drilling, helps line up a pipe while drilling for oil in the Bakken shale formation on July 23, 2013 outside Watford City. Andrew Burton—Getty Images  A coal-burning energy plant is seen in an aerial view in the early morning hours of July 30, 2013 near Bismarck. Andrew Burton—Getty Images ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/3978378/shell-job-cuts/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/3978378/shell-job-cuts/"},"headline":"Here’s Why Oil Giant Shell Is Slashing Thousands of Jobs","datePublished":"2015-07-30T13:19:21.000Z","dateModified":"2026-05-11T04:44:33.750Z","description":"Company sees a ‘prolonged downturn’ in the oil industry","url":"https://time.com/3978378/shell-job-cuts/","keywords":["Shell","Tech","Crude Oil","Gas prices","Oil prices","pubdesk"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/blt9bcb32fc0d0b6916/69885d2ae53abafc854ded74/463255399-e1404337530458.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Claire Zillman / Fortune"}],"articleSection":"Business","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/blt9bcb32fc0d0b6916/69885d2ae53abafc854ded74/463255399-e1404337530458.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"463255399-e1404337530458","caption":"","creditText":"","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/business/","name":"Business"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/shell/","name":"Shell"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/3978378/shell-job-cuts/","name":"Here’s Why Oil Giant Shell Is Slashing Thousands of Jobs"}}]},{"@context":"https://schema.org","@type":"VideoObject","name":"TIME Explains: Challenges to America's Energy Independence","description":"The U.S. has been chasing energy independence for years, but even though new technology might make it possible, the situation is more complex than it appears. 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