Shell to cut 2800 jobs

  • 15/12/2015
Shell (File)
Shell (File)

Royal Dutch Shell says it plans to cut 2,800 jobs following its mega takeover of smaller rival BG Group.

"Shell currently expects an overall potential reduction of approximately 2,800 roles globally across the combined group, or approximately three per cent of the total combined group workforce," Shell said in a statement on Monday.

Shell said the cuts were in addition to previously announced plans to reduce its own headcount and contractor positions by 7500 worldwide.

The Anglo Dutch group earlier yesterday said that the takeover had won approval from the Chinese government.

Shell's STG55 billion (NZ$122 billion) acquisition of BG Group had already been cleared by authorities in Australia and Brazil, as well as the European Commission.

The deal is aimed at helping Shell boost its flagging output thanks to BG's strong position in liquefied natural gas (LNG), a cleaner alternative to coal and nuclear energy.

The tie-up comes also as oil prices slump on world markets, severely reducing profits at energy majors.

"I am delighted we now have all the pre-conditional approvals needed to move to the next important phase," Shell chief executive Ben van Beurden.

"This is a strategic deal that will make Shell a more profitable and resilient company in a world where oil and gas prices could remain lower for some time."

Shell, which will now seek approval from both sets of shareholders, remains on track to complete the deal in early 2016.

AFP