Royal Dutch Shell (RDS.A,RDS.B) has announced that it will be laying off 6,500 employees.
The Shell layoffs are the result of the oil company preparing for the long-term affects of decreased oil prices. The company notes that the dropping oil prices could last for several years and it’s also reducing capital investments to help prepare for this. The job cuts will occur during 2015, reports USA Today.
The Shell layoffs come as the company reports net income that was down to $3.99 billion in its second quarter of 2015. This represents a 25% drop from the same time last year. The price for a barrel of crude oil has also dropped since last year and is now down to $62 from $110. It’s also planning to lower operating costs by $4 billion, USA Today notes.
The Shell layoffs aren’t the only ones being announced by companies in the oil industry. Chevron (CVX) has announced plans to cut 1,500 employees from its workforce and other companies across the pond are planning to do the same, reports The Wall Street Journal.
RDS.A and RDS.B shares were up 3% as of Thursday afternoon.
