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Shell job losses could be worsened by Brexit vote

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Oil giant Royal Dutch Shell has warned over the possibility of further job cuts.

The risk of more job losses is a result of uncertainty caused by the UK’s vote to quit the European Union, City A.M. understands.

Since last year Shell has slashed 12,500 jobs following the fall in oil prices and its tie-up with rival BG.

At the time of Shell’s initial takeover bid for BG Group last year it had 93,000 employees. Meanwhile, BG Group’s staff numbered around 5,000.

The deal came amid a collapse in oil prices, which fell from over $115 per barrel in the summer of 2014 to as low as $27 in February this year.

The price plummet was triggered by the refusal of oil cartel Opec to cut production, leading to a supply glut in the market.

The oil price has recovered since February, climbing to around the $50 per barrel level in recent months.

Between the oil price peak and Shell’s offer for the company in April 2016 BG’s share price fell by over a third.

Speaking of job losses, Shell chief executive Ben van Beurden said in an interview with the Telegraph: “Much will depend on how the environment will continue to develop.”

The Shell boss also said the company is considering selling out of its mature assets in the North Sea.

Shell has some 65 interests and operates more than 30 platforms in the region.

Last month it was revealed over 120,000 UK oil related jobs are expected to have been lost between 2014 and the end of this year because of the lower oil price.

SOURCE

1 Comment on “Shell job losses could be worsened by Brexit vote”

  1. #1 Peter Robins
    on Jul 4th, 2016 at 13:20

    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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