- Job cuts are taking place in the Middle East and North Africa
- Exact numbers for job cuts in the region have not been announced
- Shell has warned that the oil price downturn could last for several years
- The company is reviewing project spending
Anglo-Dutch energy company Shell has announced that it will make 6,500 job cuts globally, some of which will be made in the Middle East and North Africa region.
Shell has announced restructurings in parts of our organisation that needed to be more competitive including the MENA region, a spokesman said in a statement to MEED.
This meant a reduction of about 6,500 employees and direct contractors in 2015 some of whom where employees and contractors from MENA.
The spokesperson said he could not share the exact number of affected employees and contractors in the MENA region.
Shells cuts come after a sustained period of low oil prices following the collapse in oil prices over the second half of 2014.
Shell reported a 37 per cent fall in second-quarter earnings, which fell to $3.8bn from $6.1bn in the same period in 2014.
The company has warned that the oil price downturn could last for several years and said it would continue to review both ongoing projects under construction and medium term investment options, to balance returns, affordability and medium term growth potential.
Shell is currently working on a company overhaul after it agreed to buy UK-based BG Group for around $70bn in April 2015.