Royal Dutch Shell plans to make a total of 10,000 staff and direct contractors redundant as it continues its efforts to reduce its operational costs, and will step up sales of its assets to generate cash over the next two years.
The 10,000 jobs being lost are an aggregate of 7,500 job cuts announced in the third quarter of 2015 plus 2,800 announced in early December, which will be made after the merger with BG Group.
Shell said today it cut operating costs by $4bn in 2015 and that it expects further reductions of $3bn in 2016.
“Asset sales for 2014 and 2015 now exceed $20bn, well above the original plan of $15bn set out in early 2014,” Shell said. “Preparations are well advanced for $30bn of asset sales in 2016-18, assuming the successful completion of the combination.”
Shell has already announced plans to cut its capital expenditure by $1bn during 2016, leaving its spending forecast at $29bn.
Likewise, after Shell’s merger with BG Group, the merged entity plans to spend $33bn this year, $2bn lower than earlier forecast. Shell said today it expects the merger to be completed within weeks.