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Shell boss warns more job losses at the firm could “absolutely” happen

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Written by Mark Lammey – 03/07/2016 3:17 pm

The boss at Royal Dutch Shell (LON: RDSB) has reportedly said further job losses could “absolutely” take place at the company.

Shell chief executive Ben van Beurden said in an interview with the Sunday Telegraph cuts were always a possibility in the absence of large deals being struck.

Shell is axing about 12,500 roles this year due to a combination of low oil prices and its takeover of BG Group.

In May, the firm said the headcount for its North Sea operations would drop by 475 to 1,700 as part of the reductions.

Shell said, however, the net number of job losses across the business in 2016 would be fewer than 5,000 as it expects to keep recruiting this year.

Commenting on the prospect of additional job losses, Mr van Beurden said: “There could be, yeah, absolutely. Much will depend on how the environment will continue to develop.

“There will always be also, in the absence of large deals, the continuous improvement drive which may result in jobs either not being required any more, or going to different parts of the globe, or general efficiencies or shutting things down.

“You can never say you are done with staff reductions.”

Mr van Beurden also reiterated Shell was mulling the sale of aging assets in the North Sea, where the company operates more than 30 platforms, but would not exit the UK altogether.

He said: “We will be looking again at what is the set of assets that we want to hold on to, where do we believe we will produce right to end of life, and where do we have a better option to sell to a better owner.”

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1 Comment on “Shell boss warns more job losses at the firm could “absolutely” happen”

  1. #1 Peter Robins
    on Jul 4th, 2016 at 13:28

    Shell job cuts till now are only cosmetic one targeting only lower rank low cost employees leaving the higher rank high cost non-productive expats and job group A, B and 1 ranks. The powerful EC and EC-1, EC-2 rank employees is done their best to retain their jobs untouched and made fool the investors through job cut numbers without divulging the exact saving due to these cuts. But in 2009 transition the situation was different under stewardship of then CEO Peter Voser. He ensured to cut jobs from higher rank targeting the costly employees of costly countries and ring fenced cheap country staffs. But this Shell management is too busy to save their own jobs than thinking of company benefit. This management also doing racial discrimination in paying severance package among employees of Europe and Asia. Let us see how long these management can save their jobs through such corrupt exercise.

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