Energy giant Royal Dutch Shell’s multi-billion pound deal to buy oil and gas firm BG Group is set to lead to 2,800 job losses.
The firm, led by chief executive Ben van Beurden, said it expected the cuts – equivalent to about 3 per cent of the enlarged group’s workforce – to be across the combined business, affecting its global operation.
There was no information about how many jobs could be cut in the UK, but the reductions are in addition to previously announced plans to reduce Shell’s headcount and contractor positions by 7,500 globally.
A statement said: “In advance of completion of its recommended combination with BG Group, Shell today announced further details of the proposed operational and administrative restructuring under consideration.
“Shell expects the restructuring will be required to achieve the expected benefits of the recommended combination.”
“Shell’s expectation is that BG’s business would be integrated into Shell’s businesses. As part of that, Shell proposes that office consolidation will be undertaken where practical in certain locations around the world.
“With regards to office footprint rationalisation in the UK, Shell will, following deal completion, undertake a comprehensive review during the course of 2016.
“The proposed changes are subject to deal completion, engagement with affected employees and relevant employee representatives. Further detailed work will be undertaken on the details of the proposed operational and administrative restructuring as part of ongoing integration planning. The deal remains on track for completion in early 2016.”
Shell’s announcement on the proposed job losses came as the group said China’s Ministry of Commerce had given its merger with BG the green light. Following previous approvals from Australia, Brazil and the European Union, the clearance marked the final pre-conditional approval required for the tie-up.
“This is a strategic deal that will make Shell a more profitable and resilient company in a world where oil and gas prices could remain lower for some time, said van Beurden.
“We will now seek approval from both sets of shareholders as we move towards deal completion in early 2016.”