• 2 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 2 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 2 days Schlumberger Warns Of Moderating Investment In North America
  • 2 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 2 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 2 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 2 days New Video Game Targets Oil Infrastructure
  • 2 days Shell Restarts Bonny Light Exports
  • 2 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 3 days British Utility Companies Brace For Major Reforms
  • 3 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 3 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 3 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 3 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 3 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 3 days Rosneft Signs $400M Deal With Kurdistan
  • 3 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 4 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 4 days Russia, Saudis Team Up To Boost Fracking Tech
  • 4 days Conflicting News Spurs Doubt On Aramco IPO
  • 4 days Exxon Starts Production At New Refinery In Texas
  • 4 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 5 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 5 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 5 days China To Take 5% Of Rosneft’s Output In New Deal
  • 5 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 5 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 5 days VW Fails To Secure Critical Commodity For EVs
  • 5 days Enbridge Pipeline Expansion Finally Approved
  • 5 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 5 days OPEC Oil Deal Compliance Falls To 86%
  • 6 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 6 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 6 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 6 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 6 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 6 days Aramco Says No Plans To Shelve IPO
Alt Text

Brazil Sees Oil Exports Soar

Latin America has seen significant…

Alt Text

Why Petrol Powered Cars Aren’t Going Anywhere

Internal combustion engines are still…

Alt Text

Oil Shows Weakness, But Don’t Expect A Plunge

Oil prices remained firm this…

Shell’s Job Losses Now Equal Facebook’s Entire Payroll

Shell logo

Royal Dutch Shell announced that it would eliminate another 2,200 positions, which means that its total job losses is roughly equivalent to the entire payroll of the tech giant Facebook.

By the end of 2016, Shell will have slashed 12,500 positions, a staggering total for one company. According to Statista, Facebook only employed 12,691 people as of 2015.

Much of Shell’s attrition is due to the collapse of oil prices, which has plunged the Anglo-Dutch oil major into a cash flow crisis. However, other job losses are due to its purchase of BG Group – synergies between the two companies will lead to the loss of around 2,800 positions, the company previously said. The combined Shell-BG company employed 94,600 people at the start of the year.

Shell and Facebook are a study in contrasts. The market cap of the tech giant ($343 billion) is 1.7 times higher than Shell’s $200 billion, but Facebook employs less than 15 percent of the people. Related: BP Faces Setback In World’s Largest Unexplored Oil Basin

Shell said that 475 of the 2,200 job losses will take place in the UK and Ireland, where it produces oil in the North Sea. “These are tough times for our industry,” Paul Goodfellow, Shell’s VP in the UK and Ireland, said in a statement. “We have to take further difficult decisions to ensure Shell remains competitive through the current prolonged downturn.” All told, the company expects to eliminate a total of 5,000 jobs this year.

Shell’s debt levels have jumped because of low oil prices and the BG purchase, taking its debt to equity ratio from 14 to 26 percent, a worrying climb. Investors have pressed the company to slash spending below $30 billion, and the oil major has pledged to dispose of $30 billion in assets to raise cash.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Jose Garcia on May 25 2016 said:
    Comparing payrolls at Shell and Facebook makes no sense. Although the market capitalization of FB is currently higher than Shell, the revenue of FB for 2015 was $17.928 billion while the revenue of Shell for 2015 was $264.96 billion.

    The simple fact is that the current P/E using 2 years of data for Facebook is much, much higher that for Shell reflecting two different stock valuation approaches, a growth stock versus a value stock.

    Comparing apples to oranges is always a bad idea.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News