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2015-12-15 19:30:00

SHELL CUTS 2,800 JOBS

SHELL CUTS 2,800 JOBS

Royal Dutch Shell Plc said it would cut about 2,800 jobs to meet a pledge of reducing operating costs by $3.5 billion following its takeover of BG Group Plc.

That equates to 3 percent of Shell and BG's combined workforce as The Hague-based company consolidates offices and its administration structure once the acquisition is completed, it said in a statement on Monday. The two companies both have offices in a number of countries, including the U.K., Australia and Brazil.

Oil's slump has prompted some investors to question if Shell is paying too much for BG, even though the acquisition will make the combined company the world's biggest liquefied natural gas player and give it oil and gas assets from Australia to Kazakhstan and Brazil. To convince shareholders to approve the deal, Shell has promised cost savings.

"Shell expects the restructuring will be required to achieve the expected benefits of the recommended combination, including previously disclosed and reported-on pretax synergies of $3.5 billion," the company said.

BG had 5,143 employees and Shell 94,000 at the end of 2014. Shell has already announced 7,500 cuts in employee and contractor jobs this year.

energynow.ca

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More: 

SHELL SELLS NEW ZEALAND 

TAKEOVERS $500 BLN 

SHELL WILL SELL $20 BLN 

SHELL & BG PRESENCE 

SHELL LOSS $6.12 BLN

 

 

 

 

Tags: SHELL, BG, OIL, PRICES
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