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Royal Dutch Shell to lay off thousands amid drop in oil prices
by Joseph Earnest July 30, 2015
Newscast Media LONDON—Royal Dutch Shell has announced plans to lay off 6,500 workers this year due to global decline in oil prices. The company see a prolonged downturn in the oil industry.
While announcing a 35 percent decrease in its profit, a statement from the company says it intends to slash operating costs for 2015 by 10 percent. The London-listed oil firm said it may force to cut more jobs next year warning that lower oil prices could continue for several years.
“We’re taking a prudent approach, pulling on powerful financial levers to manage through this downturn. We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery," Chief executive Ben van Beurden said.
“It not just oil but the prices of natural gas have depressed for a number of years. So, it’s the mixture of the two and clearly oil companies will be cutting back on investment and staff. Clearly, the longer the oil and gas prices stay low, they will need cost cutting”, Marco Pietroboli, a London-based economist told Press TV.
Anglo–Dutch multinational oil and gas firm currently employs about 94,000 people. This is the first time the company has announced cost cutting measures for this year. "These are challenging times for the industry, and we are responding with urgency and determination, but also with a great sense of excitement for the future."
The cost of oil slumped over a year ago--dropping more than 50 percent. It has mainly attributed to falling demand in many emerging economies in Asia, and soaring production of shale oil in the United States. Add Comments>>
Source: Press TV
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