Shell to slash 2,800 jobs as BG merger gets China approval

Oil giant Shell said it was axing 2,800 staff as part of its massive merger with BG after clearing its last international regulatory hurdle.

Shell said the job losses, about 3% of the combined workforce, were needed “to achieve the expected benefits of the recommended combination”.

BG's business will be integrated into Shell. A review of office duplication will take place during 2016, Shell said in a statement.

These cuts are in addition to the previously announced plans to reduce Shell’s headcount and contractor positions by 7,500 globally.

The company on Monday said the BG deal had received unconditional merger clearance from the Chinese Ministry of Commerce.

The green light comes after similar approvals in Brazil, the EU and Australia.

“This is a strategic deal that will make Shell a more profitable and resilient company in a world where oil and gas prices could remain lower for some time. We will now seek approval from both sets of shareholders as we move towards deal completion in early 2016," said Shell CEO Ben van Beurden.