Chief Executive Officer of Royal Dutch Shell Ben van Beurden. Image courtesy of Shell/Flickr.

Royal Dutch Shell said Tuesday it will cut 2,800 jobs as part of a broader restructuring plan to be implemented after it completes its pending merger with BG Group.

Shell currently expects an overall potential reduction of 2,800 roles globally across the combined group, or about 3 percent of the total combined group workforce.

These reductions are in addition to the previously announced plans to reduce Shell’s headcount and contractor positions by 7,500 globally.

Shell announced plans in November to retain several BG Group executives after the companies complete their combination, just days after outlining an upstream reorganization plan that calls for $30 billion in asset sales  between 2016 and 2018.

Shell has also proposed that office consolidations should be undertaken “where practical in certain locations around the world.”

As part of the office footprint rationalization plan in the UK, Shell said it will perform a comprehensive review during 2016, once the merger is complete.

Shell expects that the restructuring will be required to achieve the expected benefits of the recommended combination, including previously disclosed pre-tax synergies of $3.5 billion.

Chinese antitrust regulators approved the combination earlier this week, marking the end of the pre-conditional approval process.

The merger is expected to be completed in early 2016.

Royal Dutch Shell agreed in April to acquire UK-based BG Group for about $70 billion in cash and shares.

The deal is expected to grow Shell’s proved oil and gas reserves by 25 percent and increase its production by 20 percent while saving the company $2.5 billion per year.


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