Shell has announced that, following the merger with BG Group, it intends to make approximately 2800 workers redundant. This is approximately 3% of the companies’ combined workforce and accompanies Shell’s previously announced plans to decrease its headcount and contractor positions by 7500 worldwide.
Regarding office footprint rationalisation in the UK, Shell claims that it will commence a full review after the merger in 2016.
Shell claims that such restructuring will be necessary to achieve the maximum benefit from the merger, including previously disclosed and reported-on pre-tax synergies of US$3.5 billion (this is subject to bases of belief, principal assumptions and sources of information set out in the appendix of the announcement on 3 November 2015 by Shell, which provided a strategic update to investors).
This proposal is subject to the actual completion of the deal, as well as engagement with the redundant employees and their representatives. However, the deal has recently received regulatory approval from the Chinese Ministry of Commerce, and Shell claims that the deal is still scheduled for completion in early 2016.
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquefaction/15122015/shell-plans-2800-additional-job-cuts-following-merger-with-bg-group-1770/