GLASGOW’S council leader has pledged support to Royal Dutch Shell employees after it was announced around 380 jobs are at risk after the company said it would shut its Glasgow operation in response to the low oil price.

Shell’s finance operation will close in the city by the first three months of 2018, as the firm looks to cut costs in the face of a 50% drop in Brent crude prices from their peak in June 2014.

Shell, which employs 12,000 people globally, said it would relocate some positions to its other international centres but the number had not been decided.

Councillor Frank McAveety, Leader of Glasgow City Council, said: “Staff will undoubtedly be devastated by today’s announcement. In Glasgow we have been working hard to bring jobs to the city and we will continue to focus on growing the economy and creating opportunities in our city. The council will offer all the support we can to Shell employees.”

A company spokesman said the company was taking “difficult choices” in order to “remain competitive” and the move was driven by “increasing pressures on our business to reduce cost and generate cash”. He said the operations in Glasgow could be carried at other centres across the globe” but at a significantly lower cost”.

Staff were told about the closure of the Boswell Street office on Wednesday morning, triggering the start of a 45-day consultation.

Shell launched the Glasgow office in 1998 to oversee areas such as financial reports and management information, government risk and assurance, and travel and expenditure.

Scottish Liberal Democrat energy spokesperson Liam McArthur MSP said: “This news will be a devastating blow to those directly affected and their families”, while Scottish Conservative Glasgow MSP Annie Wells said: “It’s regrettable to see this many jobs being lost in Glasgow and I offer my condolences to the workers that will be affected.”