Shell cuts 10% of workforce - 10,000 jobs - after tanking oil price affects annual profits

Shell said it will push ahead with plans to acquire its smaller rival BG for $52 billion

Shell employs 94,000 people worldwide (Getty)

Royal Dutch Shell is feeling the pressure in profits after reporting its worst results for 13 years.

The company has already started cutting 10,000 jobs to try and stem losses from the low oil price, which has fallen by almost 70 per cent in less than two years.

The company, which operates in more than 70 countries, employs around 94,000 people worldwide. The job losses will be complete by the end of 2016.

Shell said income from 2015 fell 87 per cent year on year to $1.94 billion, in line with analysts expectations.

Profit in the fourth quarter fell 44 per cent to $1.83 billion.

Shell is not the only energy company suffering from the oil price. BP said its fourth quarter earnings were down 91 per cent on the same period in 2014.

Shell said it will push ahead with plans to acquire its smaller rival BG for $52 billion.

“The completion of the BG transaction, which we are expecting in a matter of weeks, marks the start of a new chapter in Shell, rejuvenating the company, and improving shareholder returns,” said Ben van Beurden, CEO.

Shell warned that its annual profits had been seriously hit in a note to investors two weeks ago.

“We were not expecting any fireworks given Shell gave divisional guidance just a couple of weeks ago, however we would highlight that most divisions came in towards the top end of management's guidance range, which we view as positive,” said Biraj Borkhataria, analyst at RBC Europe.