Shell Layoffs: RDS.A to Cut 2,800 Jobs

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Royal Dutch Shell (RDS.A,RDS.B) has announced plans to cut 2,800 jobs.

shell-layoffs-rds.a-rds.bThe Shell layoffs will occur after it completes its merger with BG Group (BRGYY). The two companies have regulatory approval and the merger will be completed next year. Shell was expected to layoff employees following the merger, but the exact number wasn’t known until now, reports The Wall Street Journal.

The 2,800 Shell layoffs that will occur next year are in addition to the 7,500 job cuts that it announced earlier in 2015. Shell currently employs 90,000 people and BG Group employs 5,200 workers. Low oil prices have been affecting oil companies and may be connected to the layoffs, WSJ notes.

“At $40 [a barrel] it’s very hard to make this deal work. You need $60-70,” David Cumming, head of investment firm Standard Life, told The Telegraph. “The break fee is pretty low, so I think Shell will come under pressure over the next few months to say how the deal is going to work.”

RDS.A and RDS.B shares were down 2% as of Monday morning.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/12/shell-layoffs-rds-a-rds-b/.

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