Shell is cutting 6,500 jobs for low oil prices

Shell-business-people re-el magazine

1 August 2015

Tags:business, business news  financial news, business finance, small business websites

Royal Dutch Shell plans to proceed to cut 6,500 jobs this year and further reduce costs to cope with a prolonged period of low oil prices, which caused the decrease in earnings by 37% for the second quarter.

The Anglo-Dutch group also said it plans to sell more assets as it has decided and make real the acquisition of BG Group for 70 billion dollars, increasing the total sales of assets at 50 billion dollars between 2014 and 2018.
“We must be resistant to a world where oil prices remain low for some time, while we should monitor the recovery,” the CEO of the company Ben van Boirnten said.
He announced plans to cut 6,500 jobs from the staff and direct contractors of 2015 by a total of almost 100,000 employees. At the same time it said it would cut capital investments for the second time this year at 30 billion. Dollars, an amount that is 20% lower than last year as expects the decline in oil prices to last for many years.
Large oil companies have reduced by 10-15% their spending for 2015 compared to last year in an effort to offset the low prices of “black gold” that during the last year have halved falling below $ 55 the barrel. The rivals BP and Total also announced further cuts this week.
Net earnings for Shell in the second quarter amounted to 3.835 billion dollars, compared with 6.13 billion dollars a year earlier and 3.25 billion dollars in the previous quarter.

Tags:business, business news  financial news, business finance, small business websites



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