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Shell to cut 2,800 jobs following BG takeover
[LONDON] Royal Dutch Shell on Monday said it planned to cut 2,800 jobs following its mega takeover of smaller rival BG Group.
"Shell currently expects an overall potential reduction of approximately 2,800 roles globally across the combined group, or approximately three percent of the total combined group workforce," Shell said in a statement.
Shell said the cuts were in addition to previously announced plans to reduce its own headcount and contractor positions by 7,500 worldwide.
The Anglo Dutch group earlier Monday said that the takeover had won approval from the Chinese government.
Shell's US$84-billion acquisition of BG Group had already been cleared by authorities in Australia and Brazil, as well as the European Commission.
The deal is aimed at helping Shell boost its flagging output thanks to BG's strong position in liquefied natural gas (LNG), a cleaner alternative to coal and nuclear energy.
The tie-up comes also as oil prices slump on world markets, severely reducing profits at energy majors.
"I am delighted we now have all the pre-conditional approvals needed to move to the next important phase," Shell chief executive Ben van Beurden.
"This is a strategic deal that will make Shell a more profitable and resilient company in a world where oil and gas prices could remain lower for some time." Shell, which will now seek approval from both sets of shareholders, remains on track to complete the deal in early 2016.