Oil Firms Face Further Job Cuts as Mega Miners Shares Rise

Price of oil is slowly recovering but it is too late for many oil and gas companies who reveal they plan more job cuts this year

Karen Kwok 6 June, 2016 | 4:16PM
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The UK’s oil and gas companies will continue to cuts jobs this year in an effort to reduce operating costs despite the oil price starts recovering.

The Bank of Scotland/Lloyds Banking Group’s fifth annual oil and gas sector report surveyed more than 140 companies of all sizes within the sector. It revealed that 51% of companies have cut jobs in the past 12 months, becoming one of the “predictable, tactical efforts to reduce costs” by oil producers. The report found that only one new job created for every six lost in 2015.

Companies based in Scotland are under most pressure, with 63% of them have had to cut jobs in the past six months.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Anglo American PLC2,757.00 GBX-0.20Rating
Antofagasta PLC1,437.50 GBX0.49
BHP Group PLC1,941.00 GBX0.65Rating
Glencore PLC367.00 GBX-0.42Rating
Rio Tinto PLC4,672.50 GBX0.51Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk