Page last updated at 09:57 GMT, Tuesday, 16 March 2010

Shell planning to cut a further 1,000 jobs

Shell petrol pumps
Shell saw profits fall sharply at the end of last year

Anglo-Dutch oil giant Royal Dutch Shell has said it will shed a further 1,000 jobs by the end of next year as part of its continuing cost cutting programme.

The company gave no details about where the jobs would be cut.

Chief executive Peter Voser said Shell had become "too complicated and slower to respond than we'd like".

However, the company said it was making substantial investments in new projects and expected to see production increase significantly in the next two years.

Last month, the firm reported a sharp fall in profits in the last three months of 2009 due to falling demand for oil from a weak global economy.

Higher production

The oil company said it would be cutting 2,000 jobs by the end of 2011, 1,000 of which had already been announced.

It also said it would be cutting costs by $1bn (£664m) this year.

Shell said it expected production to increase to 3.5 million barrels a day by 2012, an increase of more than 10% on 2009 levels.

This would increase cashflow by 50% with oil priced at $60 a barrel, and by more than 80% at $80 a barrel, it added. Oil is currently priced at just under $80 a barrel.

"These are exciting times for Shell," said Mr Voser. "We are poised to deliver a new wave of financial and production growth."

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