Shell starts staff cut discussions with employees in Australia

A Shell sign is seen at a petrol station in Melbourne March 8, 2010. REUTERS/Mick Tsikas

LONDON (Reuters) - Shell RDSa.L has started discussions with employees in Australia about job reductions, the company said on Wednesday, as part of plans to cut 10,300 jobs worldwide to lower costs.

“Shell last week commenced conversations with employees about business efficiency and staffing levels – as a result of combining it with the previously BG-owned QGC – a process that will lead to job reductions,” a spokesman said.

Shell is in the process of integrating assets it acquired as part of its $50 billion (£34.2 billion) takeover of gas producer BG Group, including BG’s Australian subsidiary QGC.

The integration of BG will lead to 2,800 job losses, Shell has said.

This week, Shell announced the closure of BG’s British headquarters by the end of the year and the start of a voluntary redundancy programme for staff in Britain.

Reporting by Karolin Schaps; editing by Jason Neely