International oil giant Shell is to close down its Glasgow finance office and cut 380 jobs overseas against persistently low oil prices by hiring cheaper workers in the developing world. The Anglo-Dutch supermajor told 380 staff at its finance operations in Glasgow that the office would be closed and they were facing “involuntary severance”.
Scottish MPs said the announcement was a “devastating blow” to staff. The jobs will be moved over a 15-month period to locations such as Shell’s offices in Chennai in India and Kuala Lumpur in Malaysia.
Since last year, Shell has announced 12,500 job cuts.
Speaking after the meeting, a Shell spokesperson 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. Employees currently based in the Glasgow office will likely face involuntary severance.”
Shell signalled earlier this year that more staff could be affected, as it tries to trim costs as rock-bottom oil prices continue to dent profits.
“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,” Shell said.
“We understand this is very difficult news for employees. During the transition period we are committed to ensuring ongoing regular employee engagement and support.”
The Glasgow office is part of a division that manages financial reporting, corporate governance risk and travel and expenditure.