Royal Dutch Shell says it is cutting 10,000 jobs amid its steepest fall in annual profits for 13 years. According to Ben van Beurden, chief executive of Royal Dutch Shell, the company is embarking on the measure to refocus its operations in 2016.
He disclosed that the company made $1.8bn for the fourth quarter of the year, compared with a $4.2bn profit for the same period the year before. He also announced that Shell would be taking over BP, its arch-rival.
Earlier in the week, BP announced a profit slump of 51% to $5.9bn for 2015 and a further 3,000 job cuts earlier this week. “The completion of the BG transaction, which we are expecting in a matter of weeks, marks the start of a new chapter in Shell, rejuvenating the company and improving shareholder returns,” he said. “We are making substantial changes in the company, as we refocus Shell, and respond to lower oil prices.
As we have previously indicated, this will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies.” Beurden said Shell might take further drastic actions if the need arises. “As a result of our actions in 2015, we have retained a strong balance sheet position, with 14% gearing,”
he said. “Shell will take further impactful decisions to manage through the oil price downturn, should conditions warrant that,” In recent times, different oil companies and their suppliers have cut back hard on investment and jobs as a result of the sharp decline in oil price