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More oil workers laid off

Shell axes more than 400 jobs in Aberdeen HQ

David MundellShell is to axe a further 475 jobs, mainly in Aberdeen as a result of the low oil price and its merger with BG Group.

The cuts are among 2,200 job losses announced by the company today and take the total axed over the last two years beyond 10,000.

Cutbacks in the payroll follow the biggest slump in profits for 13 years, announced in February.

Shell UK and Ireland vice president Paul Goodfellow, said: “Despite the improvements that we have made to our business, current market conditions remain challenging.

“Our integration with BG provides an opportunity to accelerate our performance in this ‘lower for longer’ environment.

“We need to reduce our cost base, improve production efficiency and have an organisation that best fits our combined portfolio and business plans.”

While most of the 475 UK job losses will be from Shell’s headquarters in Aberdeen some will be at its plant at Mossmorran in Fife.

Secretary of State for Scotland David Mundell said: “The announcement of these job losses marks a difficult time for the workforce and their families in the North East of Scotland.

“The UK Government will do all it can to support the workers, and the industry as a whole. We have introduced a significant package of tax measures, worth £2.3 billion, to ensure the UK remains an attractive destination for investment. To support Aberdeen directly we have agreed with the Scottish Government and local authorities a £250 million City Deal for Aberdeen and Aberdeenshire.

“It is vital that we take action now which will help in the short, medium and long terms – building a bridge to the future of the North Sea and helping the UK’s oil and gas industry to export its world-class expertise around the globe.

“Next week I will travel to the US oil and gas centre of Texas to promote the skills, expertise and innovation of North Sea oil and gas to investors and stakeholders. I am determined to do all I can to promote the North East of Scotland and Scotland’s oil and gas sector – and that includes using our world-class network of embassies and high commissions to bang the drum for the industry on a global stage.

“I will build on relationships that can benefit both Scotland and the USA at a time of uncertainty in the oil and gas industry’s history.”

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