Royal Dutch Shell is cutting 6,500 staff and contractors across the company this year in an effort to cut operating costs by $4 billion in light of low oil prices and an expected prolonged downturn.
Most of those jobs losses were previously announced by the company, according to a Shell spokesperson 700 of those job losses are in Canada in the heavy oil operations.
The company made the announcement while releasing its second quarter results. It saw profits drop by 35 per cent to $3.4 billion compared to $5.1 billion in 2014.
“We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery. We’re taking a prudent approach, pulling on powerful financial levers to manage through this downturn,” said Ben van Beurden, CEO. “These are challenging times for the industry, and we are responding with urgency and determination.”
Shell is also looking to cut capital investment by another $3 billion this year to $30 billion. It expects even further operating cost reductions in 2016.
MyMcMurray has requested further comment.
