By C&I Week 

Shell Australia, the Australian subsidiary of Royal Dutch Shell, say it in talks with its staff about “business efficiency and staffing levels” with the company expected to cut jobs, mainly from head office.

It comes as Royal Dutch Shell prepares to shut three UK offices, affecting 1600 employees, including BG’s headquarters in Reading, after its takeover earlier this year. Royal Dutch Shell has also begun voluntary redundancies in a bid to cut 10,300 jobs across the merged. It is not known how many jobs in Australia will be impacted by the restructure.

“Shell last week commenced conversations with Australian employees about business efficiency and staffing levels  – as a result of combining it with the previously BG-owned QGC – a process that will lead to job reductions,” Paul Zennaro, spokesman for Shell Australia, said in a statement issued to C&I Week.

“The company said last year that in a difficult commodity price environment the two businesses must be more competitive together than they were separately, and that reducing staff numbers in head office locations was a key part of bringing down costs.

“Shell maintains an ambitious growth agenda in Australia, and projects such as Prelude FLNG and QGC’s Charlie expansion will provide long term jobs for Australians in regional locations.

“A majority of employees impacted by the reorganisation will be from corporate head offices, and where possible they will be provided with redeployment opportunities,”Mr Zennaro said.

This story first appeared in C&I Week.