Image courtesy of Royal Dutch Shell.

Royal Dutch Shell has reportedly begun talks with Australian employees about potential headcount reduction plans.

According to the AAP, the company has started talks with staff about an efficiency plan and job cuts following Shell’s recent merger with BG Group.

“Shell last week commenced conversations with employees about business efficiency and staffing levels – as a result of combining it with the previously BG-owned QGC – a process that will lead to job reductions,” Shell Australia spokesman Paul Zennaro told the AAP on Wednesday.

The company spokesperson said that a “majority of employees” who will be impacted by the reorganization will be from corporate head offices.

The company’s spokesperson told the APP that Shell will provide redepoloyment opportunities where possible.

News of the talks come just days after Shell proposed plans to close several UK offices, including BG’s head office in Reading.

Staff at BG’s head office will offered the chance to move to Shell’s offices in central London, according to the Guardian.

The Reading office is expected to be closed by the end of the year.

Shell confirmed in February that it expects cut 2,800 jobs globally following its $70 billion merger with BG Group.

Those reductions are in addition to the company’s previously announced plans to cut its global headcount and contractor positions by 7,500.

Shell said in December that restructuring will be needed to achieve the merger’s expected benefits, including $3.5 billion in previously disclosed pre-tax synergies.


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