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Oil giant Shell to cut 475 jobs from North Sea workforce

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Chris Foote: Wed 25 May 2016

Dutch oil giant Shell plans to cut nearly 500 jobs from its North Sea workforce.

The announcement on Wednesday came as the result of a £47bn merger with the BG Group.

All 475 jobs are expected to be lost by the end of the year, along with 4500 others worldwide.

It is believed to be one of the largest announcements of North Sea job losses in recent years.

UK and Ireland Shell vice-president Paul Goodfellow said: “We’re continuing the improvement journey we’ve been on to create a competitive and sustainable business in the North Sea.

“Despite the improvements that we have made to our business, current market conditions remain challenging.

“Our integration with BG provides an opportunity to accelerate our performance in this ‘lower for longer’ environment.

“We need to reduce our cost base, improve production efficiency and have an organisation that best fits our combined portfolio and business plans.

“As a result, we will reduce the size of the organisation supporting our UK and Ireland Upstream business by around 475 people. We will look to implement the majority of this change during 2016.

“Following these changes, Shell will still remain a key employer in the north east of Scotland with around 1700 employees.”

The company expects to have cut 12,500 jobs globally by the end of the year.

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