BG Group close its Houston office and cut 154 employees. BG Group was acquired in 50-billion-dollar deal by Shell earlier this year and staff reduction is cost-cutting part of the consolidation process following the merger as Shell adjusts to the plunge in energy prices. The layoffs aim to improve the liquidity and finance stability of the company, making it resistible to the low oil prices and stagnation in the sector. The largest part from the cut employees from the Houston office of BG Group will be laid-off in August 2016, while the rest will be laid-off in end of September 2016.

Houston office of BG Groupis located at the 46-story skyscraper at 811 Main Street. All the cuts will be done following the US laws and social policy of the group. The affected employees do not have bumping rights, meaning workers with more seniority cannot take the jobs of those with less seniority.

“A small number of employees required to perform specific transition activities will remain employed at (811 Main St.) and laid off at a later date, once those transition activities have been completed”, says the official statement of BG Group. “BG intends to offer severance benefits and outplacement services to affected employees. It is our hope that these programs will lessen the impact of the mass layoff on the individual employees and on the community as a whole”, adds the statement.

“After considering the findings for Houston, the decision was taken to consolidate all Houston-based operations into existing Shell office”, said CEO of BG Group and executive vice president of integration at Royal Dutch Shell, Huibert Vigeveno.

Shell had warned even before the takeover was completed that there would be massive job cuts. The local layoffs come as Shell and BG Group carry out plans to shed nearly 3,000 workers in an effort to reduce costs. Shell cut 7,500 jobs last year to cope with low energy prices.