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Royal Dutch Shell to cut 6,500 jobs this year

Around 6,500 jobs will be axed at Royal Dutch Shell this year as the oil giant struggles amid a slump in prices, it was announced today.

Shell chief executive Ben van Beurden said the firm was planning for a "prolonged downturn" in oil prices Credit: Reuters

The firm said it was "planning for a prolonged downturn" by cutting costs by 10 per cent - some $4 billion (£2.6bn) - during 2015, with further cost-cutting expected for 2016.

Investment for the year is also being slashed by a fifth, or $7bn (£4.5bn), with chief executive Ben van Beurden adding: "We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery."


Shell to buy BG Group in £47 billion deal

Oil giant Royal Dutch Shell is to buy exploration firm BG Group in a deal valuing the British business at about £47 billion.

The companies unveiled details of the huge merger, the biggest in the industry for several years, in a statement to the London stock exchange.

Shell to buy BG Group in £47 billion deal Credit: Anna Gowthorpe/PA Wire

The swoop by the Anglo-Dutch company comes as the oil industry looks to become more efficient and reduce costs in the face of falling energy prices. BG Group, which employs about 5,200 staff in 24 countries, was created in 1997 when British Gas demerged into two separately-listed companies.

Shell quarter four earnings up to $4.2 billion

Energy company Shell has confirmed that its fourth quarter 2014 earnings have risen to $4.2 billion compared with $2.2 billion for the same quarter a year ago. On a "current cost of supplies" basis, full year 2014 earnings were $19.0 billion compared with $16.7 billion in 2013. In the firm's Q4 results, which come despite the cost of oil plummeting recently, it also noted savings of over £15 billion in potential spending over the next three years.

Shell announced results. Credit: PA

Our strategy is delivering, but we’re not complacent. Weaker oil prices underline that there’s a lot more to do. The three themes of financial performance, capital efficiency and project delivery will remain as Shell’s priorities in 2015.

– Shell CEO Ben van Beurden

In it's full year update, Shell said it had options to further reduce spending, but was "not over-reacting to current low oil prices".

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