Shell To Cut 10,000 Jobs In Drive To Slash Costs

By Sara SjolinMarketWatch Pulse

Royal Dutch Shell PLC plans to cut 10,000 jobs in an effort to further reduce costs amid a severe slump in oil prices. The Anglo-Dutch energy company said in its trading update on Wednesday it had slashed operating costs by $4 billion in 2015 and that it expects further reductions of $3 billion in 2016. In addition to that, Shell also expects synergy benefits from the BG Group PLC merger, which it believes will be complete in a matter of weeks. "Together, these actions will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies, as streamlining and integration of the two companies continue," the company said in the statement. Shell also said profit fell by as much as 50% in the fourth quarter, sending the shares down 4.2%.

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