Royal Dutch Shell will cut a minimum of 2,200 more jobs in different parts of its company around the world.

The job cuts are due in a large part to the takeover by Shell of BG Group the gas and oil exploration company and the extended period of low prices of oil, the company said.

Shell announced over 10,000 job cuts during the last two years. Last February, the oil giant posted its steepest drop in earnings for a year in the past 13 years.

A vice president of Shell for its Ireland and UK branch said that despite improvements we made to the business, the conditions currently in the market remain quite challenging.

He added that the integration with BG Group provided an opportunity in accelerating performance in this current environment of “lower for longer.”

He concluded by saying the company needed to reduce its cost base as well as improve it efficiency in production.

In the UK over 475 jobs will be lost, with the majority being at the headquarters of Shell in Aberdeen. Several offshore posts and ones in Fife will be affected as well.

The latest round of job cuts will be handed down before the end of 2016. This will take the complete number of employee and subcontracted roles lost at Shell from the beginning of 2015 to the end of this year to over 12,500.

At the start of 2016, Shell had 90,000 employees worldwide while BG employed just 4,600.

In 2015, Shell announced over 7,500 job cuts and another 2,800 were announced at the start of 2016.

The oil behemoth reported a steep drop in earnings for the full year last February to $3.8 billion in 2015 from $19 billion in 2014.

Oil companies as well as suppliers have had to cut back on jobs and investment as the dropping oil prices have dented profits and make it less worthwhile to invest.

Prices of Brent crude have halved since the middle of 2014, dropping from over $110 a barrel to less than $50. At the start of 2016, prices were less than $40 a barrel.

Last month, Shell announced its plans to close offices in different locations in Europe following its takeover of the BG Group. The closures included offices in Manchester, Aberdeen and Reading.

Shell also announced that all onshore operations based in Aberdeen would be moved to Tullos and that the offices of BG at Albyn Place were closing as well as a Shell office in Manchester.

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