Following completion of its currently proposed merger with BG Group PLC, Royal Dutch Shell PLC says it expects an overall potential reduction of 2,800 jobs globally across the combined group, or 3% of the total combined group workforce (OGJ Online, Apr. 8, 2015).
Shell deems the moves necessary to “achieve the expected benefits of the recommended combination, including previously disclosed and reported-on pretax synergies of $3.5 billion.”
With BG’s business expected to be integrated into Shell’s business, Shell proposes that office consolidation is undertaken “where practical” in certain locations around the world. With regards to office footprint rationalization in the UK, Shell says it will, following deal completion, undertake a comprehensive review during the course of 2016.
The reductions are in addition to previously announced plans to reduce Shell’s headcount and contractor positions by 7,500 globally. The newly proposed changes are subject to deal completion, engagement with affected employees, and relevant employee representatives.
Shell says further detailed work will be undertaken on the details of the proposed operational and administrative restructuring as part of ongoing integration planning. The deal remains on track for completion in early 2016.