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Jolt for economy from energy firms

Centrica and Shell to axe 12,000 jobs in restructuring

ShellEnergy firms Centrica and Shell delivered a double blow to the UK economy today with plans to axe a combined 12,000 jobs.

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.”

 

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