As its fortunes dwindled due to falling oil prices, Royal Dutch Shell Plc is to sack 10,000 people in an effort to bolster margins.
The oil producer put out a fourth quarter and full-year update on Wednesday, warning of lean times ahead, as reported by Yahoo Business News.
According to a statement from the oil giant, synergies from the BG combination will be in addition to that. 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.
Shell’s drive to improve competitive performance is delivering at the bottom line. Operating costs have reduced by $4 billion, or around 10 per cent in 2015, and the company expects Shell’s costs to fall again in 2016 by a further $3 billion.
When Shell announces its results on 4 February 2016, Shell’s fourth quarter 2015 earnings on a current cost of supplies (“CCS”) basis excluding identified items are expected to be in the region of $1.6–1.9 billion.
This includes Upstream of $0.4–0.5 billion, of which Integrated Gas some $1.6–1.9 billion, and Downstream of $1.4–1.6 billion, of which oil products some $1.3–1.4 billion and chemicals some $0.1–0.2 billion.
Full year 2015 earnings on a CCS basis excluding identified items are expected to be in the region of $10.4 – 10.7 billion.
