Oil major Royal Dutch Shell has increased its target for layoffs in 2016 by 2,200 jobs due to prolonged weak oil price environment.
As a result, 475 jobs will be cut in Shell’s UK Upstream and Ireland business.
According to Shell’s statement on Wednesday, the company’s staff have been informed about the progress being made on integrating BG into the company, and on further measures that are necessary to ensure Shell is competitive in a ‘lower for longer’ oil price environment.
To remind, the oil company previously said it would cut 2,800 jobs following its integration with BG Group. The company also recently consolidated all of its London and South East based operations into Central London with an intention to close the Thames Valley Park campus by the end of this year.
Paul Goodfellow, Shell’s Vice President for UK & Ireland, addressed staff in Aberdeen this morning. Speaking after that engagement, Goodfellow said: “Despite the improvements that we have made to our business, current market conditions remain challenging.”
Goodfellow stated that as a result of a need to further reduce the company’s cost base, Shell will during 2016 reduce the size of the organization supporting its UK and Ireland Upstream business by around 475 people.
Shell noted that following these changes the company would have 1,700 employees in the North East of Scotland.
Goodfellow added: “The reductions we’re announcing today in Aberdeen are part of a global programme of job reductions in Shell. Last year, in response to the oil price downturn, we made the tough but necessary decision to remove 7,500 Shell staff and direct contractor roles and this has now been completed. Separately, as previously announced, a further 2,800 global staff reductions were initially identified as part of the BG integration, which is now well underway.
“In 2016, the number of job reductions in response to low prices and as a result of the BG integration is expected to total at least 5,000 globally. This number includes the 2,800 integration-related roles previously announced.”
Offshore Energy Today Staff