Royal Dutch Shell is to cut at least 2,200 additional jobs following its takeover of the BG Group and the continued downfall in crude oil prices.
Out of this total, approximately 475 of the jobs will come from its UK and Ireland oil and gas production operations.
“These are tough times for our industry and we have to take further difficult decisions to ensure Shell remains competitive through the current, prolonged downturn,” Shell UK and Ireland vice president Paul Goodfellow, stated.
Shell Slashes Additional 2,200 Jobs
Most of the 475 job losses hitting the UK will be from the company’s upstream headquarters in Aberdeen, but it will also affect some posts offshore and Shell’s plant at Mossmorran in Fife.
Shell Upstream Office, Aberdeen
According to the company, the latest losses bring the total of staff and direct contractor roles being cut from the oil and gas major to at least 12,500 between the start of last year and end of 2016.
At the end of 2015, Shell employed around 90,000 people globally, while BG had approximately 4,600 employees.
5,000 Jobs Cut In 2016
According to Shell’s executive, the current market conditions “remain challenging” despite the improvements the firm has made to its business, but its integration with BG “provides an opportunity to accelerate performance in this ‘lower for longer’ environment”.
“We need to reduce our cost base, improve production efficiency and have an organisation that best fits our combined portfolio and business plans”, he stated.
The layoffs will be implemented by the end of this year, and bring the total job losses announced by Shell to over 10,000 over the past two years.
In April, Shell had already announced it would close its offices in Reading, Aberdeen and Manchester, and that it was planning to close the Thames Valley Park campus by the end of the year.