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Shell Announces Cut of 2,200 Jobs

Shell Announces Cut of 2,200 Jobs

View all news from: Shell UK Ltd
View directory entry for: Shell UK Ltd

25 May 2016

Royal Dutch Shell is to cut at least another 2,200 jobs, with around 475 of those coming from its UK and Ireland oil and gas production business.

The cuts are mainly due to Shell's takeover of oil and gas exploration firm BG Group and prolonged low oil prices, it said.

Shell has announced more than 10,000 job losses over the past two years.

In February, the firm posted its steepest fall in full-year earnings for 13 years.

"Despite the improvements that we have made to our business, current market conditions remain challenging," said Shell UK and Ireland vice president Paul Goodfellow.

"Our integration with BG provides an opportunity to accelerate our 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."

Most of the 475 UK job losses will be from Shell's headquarters in Aberdeen. Some posts offshore and at the energy company's plant at Mossmorran in Fife will also be affected.

The latest lay-offs will be implemented by the end of this year. That will take the total number of staff and contractor roles lost from Shell from the start of 2015 to the end of 2016 to at least 12,500.

Shell announced 7,500 job losses last year, and a further 2,800 job cuts at the beginning of this year.