Number of Job Cuts at Shell Rises to 6,500 with New Announcement of a Further 250 Job Cuts
Published By : 30 Jul 2015 | Published By : QYRESEARCH
Earlier this year, Shell had declared that it was cutting 250 jobs in Aberdeen. Now, the company has announced that it is increasing the number of job cuts to 500 with a further 250 job cuts in the Norwegian sector of the company. By the end of this year, Shell will have reduced its employee base by a cumulative total of 6,500, including contract employees. But Shell says that it is still too early to predict how many more jobs would be cut down as the company is further reducing spending and selling more and more of its assets.
It looks like Shell is not expecting any quick end to the current depression in oil prices on a global level. It is being said that the company plans to reduce its capital expenditure by a further US$3billion. This will mean a fall of nearly 20% in expenditures over this year as compared to the previous year. The company is also planning to dispose off assets worth US$30 billion by the year 2018, once the company completed the takeover of BG Group plc.
However, the Anglo-Dutch oil giant has vowed to continue with its controversial and highly expensive exploration expedition in Arctic Alaska, stating that the plan is long term and that it could not be affected by the current prices of oil.
Nevertheless, the company has insisted that its planned takeover of BG Group plc, worth nearly £47 billion is a good bet as it will help the company be more competitive, irrespective of the prices of crude oil in current scenario.
Shell’s chief executive, Ben van Beurden, said that the oil industry will have to show a lot of resilience in these times when oil prices seem to continue on their low prices.