Some 380 people are presently employed in the company’s Bothwell Street office in the city, carrying out a range of finance activities, including financial reporting and management information, governance risk and assurance and travel and expenditure.
Shell is offering staff the opportunity to re-locate to other, un-specified locations in its global Business Operations network, which currently employs around 12,000 people across seven locations, including Glasgow, Manila, Kuala Lumpur, Krakow, Chennai, Bangalore and Cape Town.
A Shell spokesman said today that Glasgow-based staff who are unable to re-locate will ‘likely face involuntary severance’ – ie redundancy.
He added: “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.
“Subject to employee consultation, we are proposing to close the Shell finance operations office in Glasgow and over the next 15 months, move its activities to our other locations in our global Shell Business Operations network.
“This will result in a small overall reduction in the number of jobs in Shell’s global finance operations. Employees currently based in the Glasgow office will likely face involuntary severance.
“We are making this announcement following a review of Shell’s global finance operations global network which concluded that we have an opportunity to further consolidate that network into fewer locations.
“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.
“We understand that this is very difficult news for employees. During the transition period we are committed to ensuring ongoing regular employee engagement and support.”
Meanwhile two Holiday Inn hotels in Aberdeen have been put for sale after the company which owns them collapsed into Administration after experiencing “severe cash flow problems” as a result of the downturn in the oil and gas sector.
They are the Holiday Inn Express on Chapel Street and a Holiday Inn in Westhill. The Administrators plan to keep the hotels operating as going concerns pending a possible sale. There are no plans for redundancies.