Shell steps up cost-cutting programme with further job losses

| March 16, 2010 | 0 Comments

Oil giant Royal Dutch Shell has today announced it will axe a third of its global petrol station network and shed a further 1,000 jobs by the end of next year, as part of its ongoing cost cutting programme.

The Anglo-Dutch firm, which is Britain’s second largest oil company, has been hit by a slump in demand for oil from a weak global economy.

The company is undergoing a restructuring programme and reduced headcount by 5,000 last year.

It has announced plans to cut costs by $1 billion (£664 million) this year with the loss of 2,000 jobs - 1,000 of which had already been announced.

Chief executive Peter Voser said Shell had become “too complicated and slower to respond than we’d like”.

Last month, the company posted a 75% fall in profits for the fourth quarter to $1.2 billion (£755 million), compared with the $4.8 billion the company made a year ago.

However, on a positive note, the company said in a statement: “Upstream production is expected to reach 3.5 million barrels of oil equivalent per day in 2012, an increase of 11 per cent from 2009.

“These are exciting times for Shell,” added Mr Voser. “We are poised to deliver a new wave of financial and production growth.”

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