Feeds

Shell expected to slash 3,200 IT jobs

Oil firm 'loath' to confirm number

Build a business case: developing custom apps

Oil giant Royal Dutch Shell has told its staff that it plans to make more than 3,000 job cuts.

According to a leaked memo to its staff from Shell's vice president of IT infrastructure Goh Swee Chen, the firm has been in talks with outsourcing outfits EDS, AT&T and T-systems, and said that contracts were expected to be inked in March.

She told Shell employees: "I acknowledge that there will still be uncertainty as we are working through the finalisation of contracts, open resourcing and transition preparations. I encourage you to keep an open mind and take the time to learn more about the suppliers as employers and as business partners."

The Register broke the story that Shell planned to offshore thousands of jobs in 2004.

We reported that almost 3,000 jobs in the firm's IT department could go abroad as part of Shell's cost-saving project, dubbed ITVision.

A Shell spokeswoman told us today that she was unable to comment on whether the cuts cited today were in addition to 2004's job cull.

She said that the Anglo-Dutch firm, as part of its $850m per annum like-for-like cost savings Infrastructure Sourcing Program (ISP) that first kicked off a few years ago, was continuing to look at ways of tightening the belt.

Shell had intended to reduce its headcount by 3,000 by the end of 2006. This suggests that the memo, which was published on anti-Shell website Royaldutchshellplc.com, in fact points to a new round of job cuts.

When pushed on whether or not Shell could provide a definitive figure on how many of its workers could be affected by the cuts, the spokeswoman said: "I can't confirm the number and I'm loath to comment on any number."

Royaldutchshellplc.com reckoned that around 3,200 jobs looked set to be outsourced, and that staff can expect to find out their fate in letters from the firm at some point this month. ®

The Essential Guide to IT Transformation

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.