Shell announces another 2,200 job cuts

OIL GIANT Shell is to cut 2,200 jobs from its global workforce as a result of its recent merger with BG Group.

475 of those cuts will be to Shell’s UK and Ireland operations, primarily to North Sea workers in Aberdeen. Shell attributed the cuts to low oil prices and its recent integration of BG. Shell previously announced cuts of 2,800 staff as a result of the merger, bringing the total to 5,000, which offsets the 4,600 staff it obtained from BG.

Paul Goodfellow, Shell’s regional vice president, said: “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.”

Goodfellow added Shell will still remain a key employer in the North East of Scotland, retaining around 1,700 employees.

The latest staff reductions bring the total to 12,500 since the start of 2015. Shell expects all the new losses to take place during 2016.

Oil prices have recovered in recent weeks, remaining below US$50 bbl from a low of under US$30 bbl in January, although this has not been a sufficient upturn to affect planned cuts throughout the sector.