Email leak: at Shell
Shell 'set to get ruthless'
Anglo-Dutch supermajor Shell may trim its workforce after proposals to leave vacancies unfilled and to "ruthlessly" review its use of contract staff came to light in a leaked email.
The internal email, seen by Reuters, was sent by a senior executive in Shell's core exploration and production division and told managers "the world has changed" after crude prices collapsed from over $147 a barrel in July to around $40 a barrel now.
"Do not fill vacancies ... Reconsider how hard to hold on to securing current staff that may be on the fence re. retirement," Chris Haynes, vice president technical, EPT projects said in the email.
The email was sent on his behalf by the head of human resources for the unit.
Shell declined to comment on the email.
Contract staff, on which Shell, like other companies, relies heavily to help operate its facilities, are to be targeted in the cost-cutting drive.
"Ruthlessly review third parties costs ... Review necessity of contract staff as contracts expire, renew by exception only."
The company is also targeting savings on information technology and travel costs.
However, Shell will continue with its 2009 graduate recruitment plan.
Shell sources told Reuters the company did not have targets for large job cuts, but one said there might be some "fine-tuning".
The moves follow pledges by Shell to continue investing despite the downturn in crude prices. The company plans to invest between $31 billion and 32 billion in projects this year, compared with $30 billion last year.
A copy of the email is available on Shell protest site royaldutchshellplc.com to which Shell employees often post comments