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Royal Dutch Shell cuts more jobs in Aberdeen

 

By Jillian Ambrose: 1 JUNE 2017 • 1:44PM

Royal Dutch Shell will shed a further 90 jobs from its offices in Aberdeen as it continues to whittle away at costs in the wake of a downturn in the oil market.

The Anglo-Dutch oil giant warned last year that it would make further cuts to its onshore UK workforce, most of which is based in Aberdeen, as part of a global cull.

Shell has already axed 750 jobs from its North Sea business, of which two thirds were UK jobs.

Since then Shell has sold off half its North Sea assets in a £3bn deal with private equity-backed oil company Chrysaor.

The company said the decision to scale down its staff further was not “specifically related” to the mega-deal but was part of its drive to overhaul its global business after its takeover of BG Group, which completed last year.

It has also called for voluntary redundancies from the former BG Group head office at Thames Valley Park in Reading.

Steve Phimister, Shell’s UK vice president, told a staff meeting in Aberdeen that the cuts would come in to effect by the end of the year but would not affect offshore oil workers.

“Our aim is to ensure our organisation is appropriate to support our drive to become the most competitive and resilient oil and gas business in the UK Continental Shelf,” he said.

“We are committed to the UK North Sea and see considerable future value and opportunity; we remain a significant employer, and aim to continue to invest significantly in the North Sea in the coming years,” he added.

The UK’s oil and gas industry is estimated to have lost a quarter of the workforce, or 120,000 jobs, by the end of 2016 as a result of the market downturn.

This time last year Shell admitted it would need to axe almost twice as many jobs as planned following its takeover of BG Group, by cutting an extra 2,200 from its global workforce. The total reduction in headcount has been around 12,000 since the global oil price plunge in late 2014.

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