Oil And Gas Companies Announce Job Cuts To Cope With Lower Oil Prices

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Leading oil and gas companies have announced job cuts in efforts to cope with the continued slump in oil prices. Whether it is a natural gas drilling company or an oilfield services company, the job cuts are just one of the many measures that these companies are adopting to keep afloat. The situation is the same, whether it is oil and gas jobs in Alberta or London. Read on to learn about what’s happening in the oil and gas industry.

Royal Dutch Shell Confirms Job Cuts of 10,000 This year

With the takeover of BG group, Royal Dutch Shell has confirmed job cuts totalling 10,000 this year. While they are also taking steps like reducing costs and capital investment, the job cuts are also necessary. Managing costs is a priority in the current economic scenario for the company, given that there was a 87% cut in annual net profits.

As reported in a recent news article:

“Royal Dutch Shell has confirmed it will cut 10,000 jobs worldwide after an 87 per cent plunge in annual net profits on slumping oil prices. The Anglo-Dutch group reported profit after tax of $US1.94 billion ($2.7 billion) for 2015, compared with almost $US15 billion ($20.9 billion) the previous year, Shell said in a statement.”

Southwestern Energy To Cut 40% Of Its Workforce

Another natural gas drilling company, Southwestern Energy Co. has announced that it will let go of more than 40% of its workforce. The drilling program of Southwestern Energy Co. in the U.S. has been put on hold, as it tries to grapple with low natural gas prices. A majority of companies in the oil and gas industry have opted for capital expenditure cuts. Job cuts are accompanied by severance payments and pre-tax charges, leading to added expenses for the company.

Collin Eaton said in a recent article:

“Southwestern Energy Co. will shed more than 40 percent of its workforce starting in the first quarter as it pauses its U.S. drilling program to cope with low natural gas prices, the company said Thursday.

The natural gas driller expects a $60 million to $70 million pre-tax charge for severance payments and other costs of cutting 1,100 jobs. About 300 of those are part of Southwestern’s Houston headquarters.”

Many oilfield services companies and natural gas drilling companies have announced job cuts to cope with the low crude oil prices.