Royal Dutch Shell has confirmed it will cut 10,000 jobs.
CEO Ben van Beurden said it is a consequence of the oil giant’s takeover of BG Group this month after being approved by shareholders of both companies.
He added: “The completion of the BG transaction, which we are expecting in a matter of weeks, marks the start of a new chapter in Shell, rejuvenating the company and improving shareholder returns.
“We are making substantial changes in the company, reorganising our upstream and reducing costs and capital investment as we refocus Shell and respond to lower oil prices. As we have previously indicated, this will include a reduction of some 10,000 staff and direct contractor positions in 2015/16 across both companies.”
The news comes as Shell announced a fall in profits to $1.8 billion (£1.2bn) in the fourth quarter of 2015 compared to $4.2 billion (£2.9bn) during the same period in 2014.
The firm’s full year earnings fell from $19 billion (£13.3bn) in 2014 to $3.8 billion (£2.6bn) last year.
That’s a consequence of oil prices which they reached a 12-year low in January, it stated.
Mr van Beurden said: “Shell will take further impactful decisions to manage through the oil price downturn, should conditions warrant that.”
Earlier this week, BP announced it will cut up to 3,000 new jobs after it reported a fall in profits.