Oil giant Shell has confirmed it is cutting 10,000 jobs worldwide after its profit plunged in the final quarter of the year.

Over 2015 as a whole, Shell reported net profit of $10.7bn, compared with $22.6bn in 2014.

The Anglo-Dutch company reported a massive profit warning two weeks ago and indicated jobs would go following the agreement to take over the smaller BG oil group.

‘We are making substantial changes in the company, reorganising our upstream, and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices,’ chief executive Ben van Beurden said in a statement.

‘As we have previously indicated, this will include a reduction of some 10,000 staff and direct contractor positions in 2015-16 across both companies.’