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Royal Dutch Shell plans 2,800 job cuts

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Royal Dutch Shell plans to cut about 2,800 jobs after its takeover of BG Group is completed in 2016

The job cuts, which will be spread globally across the combined group, represent 3% of the oil giant’s current workforce.

Shell announced in April that it had agreed to buy BG in a deal worth about £47 billion. The cuts are scheduled to happen after the merger, which will take place in 2016. The Chinese competition authority consented to the takeover on Monday, following approval from Brazilian, European and Australian agencies.

The Guardian reported that a Shell spokesperson said: “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.”

A Shell spokesperson told HR magazine: “The number we gave is a global figure and is a combination across many locations. It is too early to comment on this, and we will first engage with the employees affected. Consistent with its core values Shell will act with honesty, integrity and respect for people in all its people processes.”

The news coincides with the price of oil falling to a seven-year low when it reached below $40 a barrel at the beginning of December 2015.