Oil major Royal Dutch Shell will lay off another 2,200 employees, as the company struggles to sustain its business amid a slump in crude oil prices.

The latest job cuts will take the total number to 12,500 in the past one year.

Shell was quoted by Bloomberg as saying that there would an elimination of at least 5,000 jobs this year.

Shell’s vice president for the UK and Ireland Paul Goodfellow said that the job cuts are a result of prolonged slump in oil prices and the acquisition of BG Group earlier this year.

At the end of 2015, Shell and BG had a headcount of nearly 94,600.

Goodfellow said: "These are tough times for our industry.

"We have to take further difficult decisions to ensure Shell remains competitive through the current prolonged downturn."
Shell reported a 58% decline in its adjusted net income to $1.6bn for the first quarter, as oil prices continued to stay at lower levels.

It purchased BG Group for $54bn to gain access to oil and natural-gas reserves from Australia to Brazil. Its debt soared to $70bn following the acquisition.

Shell expects the acquisition to boost its operations particularly in Brazil. It plans to double production capacity in the country by 2020, with new fields.

Brazil is estimated to hold 15 billion barrels of proved oil reserves, according to US Energy Information Administration.

In March, Shell and its joint venture partners had commenced production from the third and final phase of the Parque das Conchas (BC-10) development located in the north of the Campos Basin, offshore Espirito Santo state, Brazil.

Shell estimates the production for the project final phase to add up to 20,000 barrels of oil equivalent per day (boe/d) from fields that have already produced more than 100-million barrels since 2009.