Date
21 July 2017
Shell said second-quarter profit fell 33 percent to US$3.4 billion over a year earlier. Photo: Bloomberg
Shell said second-quarter profit fell 33 percent to US$3.4 billion over a year earlier. Photo: Bloomberg

Petroleum giants to shed jobs amid oil price collapse

Petroleum giants plan to shed jobs and undertake more other cost-cutting measures amid a slump in oil prices, the Wall Street Journal reported.

Royal Dutch Shell Plc said it will cut 6,500 jobs, Chevron Corp. plans to let go 1,500 employees, while British utility Centrica Plc will slash 6,000 positions and downsize its oil-and-gas production division.

Saipem SpA of Italy also plans to cut 8,800 jobs over the next two years.

The moves indicate that energy companies believe the oil price collapse will last for a longer time, the newspaper said.

In their second quarter results, Shell, BP Plc, France’s Total SA and Eni SpA of Italy have all outlined plans to deepen spending cuts that began earlier this year when oil prices reached lows below US$50 a barrel, down from highs of US$114 a barrel last year, the report said.

Shell said quarterly profit fell 33 percent to US$3.4 billion over a year earlier.

Its exploration and production business was hit hard by the oil slump, tumbling nearly 80 percent to US$774 million from a year ago.

It said in a news release that the oil price downturn could last for several years.

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RA/CG

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