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Page added on December 29, 2007

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UK: Shell plans to outsource 3,600 jobs

Royal Dutch Shell is to shed thousands of jobs as Europe’s largest oil company joins rival BP in trying to cut costs and simplify its structure. Shell is looking to agree one of the largest ever outsourcing deals in the next couple of months, and plans to reorganise other departments, including finance operations.


The company has said previously that it wants to cut costs, but the scale of some of the proposed changes has surprised insiders and led to the leaking of information to an anti-Shell website by disillusioned staff. The biggest change will be in the information technology division, where around 3,600 staff may be affected by a plan to farm out operations to three companies.


At a board meeting thought to have taken place shortly before Christmas, Shell decided to outsource virtually the whole of its IT function, nominating EDS, AT&T, and T-Systems to take over the work. Starting on January 8, Shell is planning a series of what it calls Facing Change meetings with staff to outline further details.


Shell declined to discuss the number of staff involved, though in an e-mail written by Goh Swee Chen, vice president of Information Technology Infrastructure, the outsourcing plan presented to the board is described as “substantial” and likely to create “uncertainty”. Negotiations are continuing but Shell wants the new IT arrangements up and running by July 1.


The Telegraph (UK)



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