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Shell to cut 2,800 jobs in BG Group deal

File photo dated 03/02/11 of a Shell logo at a petrol station, as Royal Dutch Shell unveiled a 6.1bn US dollar (£4 bn) loss in the third quarter as it blamed lower oil and gas prices. ... Shell profits ... 29-10-2015 ... York ... UK ... Photo credit should read: Anna Gowthorpe/PA Wire. Unique Reference No. 24584260 ... Issue date: Thursday October 29, 2015. The oil giant also announced it had halted exploration activities offshore Alaska, and stopped the construction of the Carmon Creek oil project in Canada. See PA story CITY Shell. Photo credit should read: Anna Gowthorpe/PA Wire
File photo dated 03/02/11 of a Shell logo at a petrol station, as Royal Dutch Shell unveiled a 6.1bn US dollar (£4 bn) loss in the third quarter as it blamed lower oil and gas prices. ... Shell profits ... 29-10-2015 ... York ... UK ... Photo credit should read: Anna Gowthorpe/PA Wire. Unique Reference No. 24584260 ... Issue date: Thursday October 29, 2015. The oil giant also announced it had halted exploration activities offshore Alaska, and stopped the construction of the Carmon Creek oil project in Canada. See PA story CITY Shell. Photo credit should read: Anna Gowthorpe/PA Wire

Energy giant Shell’s multi billion pound deal to buy oil and gas firm BG Group is set to lead to 2,800 job losses.

The firm said it expected the cuts to be across the combined group, affecting its global operation – around 3% of the combined workforce.

There was no information about how many jobs could be cut in the UK, but the reductions are in addition to previously announced plans to reduce Shell’s headcount and contractor positions by 7,500 globally.

A statement said on Monday: “In advance of completion of its recommended combination with BG Group, Shell today announced further details of the proposed operational and administrative restructuring under consideration.

“Shell expects the restructuring will be required to achieve the expected benefits of the recommended combination.

“Shell’s expectation is that BG’s business would be integrated into Shell’s businesses. As part of that, Shell proposes that office consolidation will be undertaken where practical in certain locations around the world.

“With regards to office footprint rationalisation in the UK, Shell will, following deal completion, undertake a comprehensive review during the course of 2016.

“The proposed changes are subject to deal completion, engagement with affected employees and relevant employee representatives. Further detailed work will be undertaken on the details of the proposed operational and administrative restructuring as part of ongoing integration planning. The deal remains on track for completion in early 2016.”

Shell employs 94,000 people around the world, and around 6,000 in the UK.