Oil giant Shell cuts 380 jobs with closure of Glasgow office
Staff at the finance operations base in Bothwell Street are likely to face 'involuntary severance'.
Oil giant Shell is cutting 380 jobs with the closure of its finance operations base in Glasgow.
The firm informed staff of the move on Wednesday as part of a review of its "global finance operations network".
Employees at the Bothwell Street office were told the closure of the site would take place over the next 15 months, with staff "likely [to] face involuntary severance."
The Glasgow office performs finance activities including reporting and management, governance risk and travel.
A Shell spokesman said: "For Shell to remain competitive, difficult choices continue to have to be made to improve efficiency and value for money across all of our businesses and functions.
"Subject to employee consultation, we are proposing to close the Shell finance operations office in Glasgow and, over the next 15 months, move its activities to our other locations in our global Shell business operations network.
"This will result in a small overall reduction in the number of jobs in Shell's global finance operations."
He added: "Employees currently based in the Glasgow office will likely face involuntary severance.
"We are making this announcement following a review of Shell's global finance operations global network which concluded that we have an opportunity to further consolidate that network into fewer locations.
"This decision is driven by increasing pressures on our business to reduce cost and generate cash, and reflects the fact that the capability of our other centres has evolved to be able to handle the activities that are currently performed in Glasgow but at a significantly lower cost.
"We understand that this is very difficult news for employees. During the transition period we are committed to ensuring ongoing regular employee engagement and support."
Royal Dutch Shell PLC, the ultimate parent company, released its third quarter results for 2016 earlier this month.
It had reported an increase in profits in the three months to September 30, with its share price also on the rise over that period.
However, chief executive Ben van Beurden said: "Shell delivered better results this quarter, reflecting strong underlying operational and cost performance. But, lower oil prices continue to be a significant challenge across the business, and the outlook remains uncertain."