Shell to cut 10,000 jobs

In their full year report, Shell announced that it would be cutting 10,000 jobs, due to its merger with BG and the present oil price crisis.

“Shell’s drive to improve competitive performance is delivering at the bottom line. Operating costs have reduced by $4 billion, or around 10% in 2015, and the company expects Shell’s costs to fall again in 2016, by a further $3 billion. Synergies from the BG combination will be in addition to that. Together, these actions will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies, as streamlining and integration of the two companies continue.” Said the report.

The oil company is also letting go of its assets to cut costs.

“Asset sales for 2014 and 2015 now exceed $20 billion, well above the original plan of $15 billion set out in early 2014. Preparations are well advanced for $30 billion of asset sales in 2016-18, assuming the successful completion of the combination.” Said the report.

Regardless of the crisis, Royal Dutch Shell CEO Ben van Beurden said he was still pleased with Shell’s performance last year. He is optimistic about the upcoming BG merger saying it will “mark the start of a new chapter in Shell, to rejuvenate the company, and improve shareholder returns.”