EMCC European Monitoring Centre on Change

Shell

Company/Organisation:
Shell

Geographic Location

Country: World
Location of affected unit(s): UK, USA, Australia

Company

Sector: Mining / quarrying
Mining and quarrying
06.1 - Extraction of crude petroleum
Number Employed: 94000

Employment Effects

Announcement Date: 04-02-2016
Planned Job Reductions min: 10000
Planned Job Reductions max: 10000
Type of Restructuring: Internal restructuring
Employment Effect Start: 04-02-2016
Foreseen End Date: 31-12-2016
Direct Dismissals: 10000

Additional Information

The continuing low price of oil (dropping from $115 dollars per barrel in 2014 to $35 in February 2016) has resulted in Shell announcing 10,000 job cuts over the coming year, 2800 of which are coming as a direct result of Shell's $68 billion takeover of Dutch Gas Company BG group. The majority of these 2800 will come in the UK, USA, and Australia, where Shell and BG both have operations and there is overlap and duplication of roles. Shell's profits are currently at a 13 year low, having fallen 80% in that time. Shell hope that this streamlining and reduction following the takeover will maintain the shareholder dividend this year at 2015's figure of $1.88 per share, and the announcement resulted in a 6% increase in share prices on the day of the announcement. Shell has undertaken additional spending cuts, reducing operating costs by $4 billion in 2015, as well as reducing capital spending by 23% and planning to sell $30 billion of assets in 2016.