Jolt for economy from energy firms
Centrica and Shell to axe 12,000 jobs in restructuring
The owner of British Gas, trading in Scotland as Scottish Gas, said 6,000 jobs will go over five years following a five month review, though the number may reduce to 4,000 with investment in growing parts of the business.
Centrica reported a 3% fall in adjusted operating profit to £1 billion on a 2% fall in revenue to £15.5 billion for the first half. However, its British Gas division saw a doubling of profits to £528m.
Shell announced it was cutting capital expenditure by 20% to $30 billion directly as a result of the downturn in the oil price and 6,500 jobs will go worldwide.
Ben van Beurden, the oil giant’s chief executive, said: “We have to be resilient in a world where oil prices remain low for some time, whilst keeping an eye on recovery. We’re taking a prudent approach, pulling on powerful financial levers to manage through this downturn, always making sure we have the capacity to pay attractive dividends for shareholders.”