Royal Dutch Shell announced it will close its Glasgow finance operations office by the end of the first quarter in 2018.

It said about 380 remaining staff at the Glasgow office are likely to face “involuntary severance.”

Shell said the company’s other centres are “able to handle the activities that are currently performed in Glasgow but at a significantly lower cost.”

More than 500 staff had been employed at the Glasgow office before a round of voluntary redundancies.

The decision to close the office is part of a plan to reduce group-wide headcount by 12,500 over the 2015-16 period.

A Shell spokesman said: “We are making this announcement following a review of Shell’s global finance operations global network which concluded that we have an opportunity to further consolidate that network into fewer locations.

“This decision is driven by increasing pressures on our business to reduce cost and generate cash, and reflects the fact that the capability of our other centres has evolved to be able to handle the activities that are currently performed in Glasgow but at a significantly lower cost.

“We understand that this is very difficult news for employees. During the transition period we are committed to ensuring ongoing regular employee engagement and support.”

The spokesman added: “For Shell to remain competitive, difficult choices continue to have to be made to improve efficiency and value for money across all of our businesses and functions.