Uchenna Izundu
International Editor
LONDON, Apr. 23 -- Royal Dutch Shell PLC is to cut 180 jobs at its offices in Aberdeen because of rising oil recovery costs from its assets in the UK North Sea.
Union leaders have criticized the move and the company hopes to avoid compulsory redundancies and said that it needs to axe the jobs by 2010 to maintain its long term competitiveness. Its North Sea operational costs have leapt by as much as 60% over the last 3 years.
The cuts will affect office-based posts. Shell employs more than 2,000 workers, including contractors, in Aberdeen. About 7% of the workforce will be affected.
The decision was taken after the company carried out a cost and efficiency study. Last June Shell dropped plans to build a £25 million headquarters in Aberdeen and has put up part of its operations in the UK North Sea for sale.
Shell's actions follow a similar move by BP PLC that will cut its onshore North Sea workforce by almost 20%?a loss of 350 jobs. Both companies have insisted that they remain dedicated to the area.
Contact Uchenna Izundu at uchennai@pennwell.com.
