Shell to shed another 1,000 jobs as profits slide

The Anglo-Dutch firm also reported a steep drop in fourth quarter earnings – down 75 per cent to $1.18 billion (738 m) – after pressure on margins in refining offset a year-on-year increase in oil prices.

Shell has cut 5,000 jobs in the past year and said it will remove another 1,000 in 2010 – mainly in downstream and corporate functions – to make it more competitive against rivals such as BP.

BP has moved ahead of its rival after chief executive Tony Hayward stripped costs out of the business and improved the group’s refining performance.

The gap was highlighted earlier week when BP said fourth-quarter profits rose 33 per cent to $3.45 billion (2.16 billion).

Shell chief executive Peter Voser said yesterday his company was making “good progress” in its efforts to become more efficient.

“We have reduced complexity in the company, and our new organisation, announced in July 2009, is now fully up and running.”

He admitted that trading conditions were tough in 2009 and were likely to remain challenging this year.

Mr Voser said: “Our fourth-quarter results were impacted by the weak global economy. Oil prices have increased compared to a year ago, but gas prices and refining margins have declined sharply, because of weaker demand and high industry inventory levels.”