25th May 2016 12:52
THE HAGUE (Alliance News) - Anglo-Dutch oil giant Royal Dutch Shell PLC plans to cut 2,200 more jobs, as the company continues to face lower oil prices, media reported Wednesday citing an emailed statement.
The world's second-biggest oil company, which is integrating its recent acquisition of BG Group, takes the total job losses for 2015-2016 to 12,500, up from the 10,300 already announced.
The latest round of cuts would bring the total job cuts this year to at least 5,000 globally. In the UK and Ireland, the company plans to reduce staff working in exploration and production by 475.
The company had said previously that it would cut thousands of jobs as it bought BG Group for USD54 billion this year to get access to oil and natural gas reserves from Australia to Brazil. The acquisition has increased its debt to USD70 billion.
Paul Goodfellow, Shell's vice president for the UK and Ireland, said in a statement: "These are tough times for our industry. We have to take further difficult decisions to ensure Shell remains competitive through the current, prolonged downturn."
In the first quarter, Shell's income fell 58% amid the weak prices.
Despite oil's 80% recovery since January, prices remain about half the level two years ago and companies have been reporting weak earnings, higher debts and cut in credit ratings.
The oil companies have been cutting costs, cancelling billions of dollars of projects, renegotiating contracts with suppliers and eliminating thousands of jobs to stay in the business.
Copyright RTT News/dpa-AFX
Related Shares:
RDSA.LRDSB.L