• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 24 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 18 hours The United States produced more crude oil than any nation, at any time.
  • 6 days e-truck insanity
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 5 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 6 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 9 days Bankruptcy in the Industry
Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

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:


Download The Free Oilprice App Today

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




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News