Oil giant Royal Dutch Shell confirmed it would reduce its workforce by 6,500 jobs this year.
The number reflects an across the board approach and includes reductions in the UK, Norway, US, Nigeria and Canada. It’s the first time the company has put a number on total job losses.
The confirmation comes after chief executive Ben van Beurden said the firm was “successfully reducing our capital spending and operating costs, and delivering a competitive performance in today’s oil market downturn”.
The move is expected to save the firm $4billion.
Shell’s second quarter profit totaled $3.8billion a significant slide on last year’s $6.1billion. Despite the decrease, its dividend commitment remains the same at $1.88 a share.
A dipped oil price has seen a wave of North Sea redundancies. Brent crude has dropped by about 50% over the past 12 months. Earlier this year, Shell confirmed a reduction of 250 jobs.
The overarching 6,500 confirmation comes the same day its company leader said Shell’s takeover of BG would act as a “springboard to change Shell into a simpler and more profitable company”.
The firm also confirmed it would make further cost reductions in the coming year.
Shell currently employs 94,000 people.
More details are expected to be available when van Beurden addresses investors later today.
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