Shell re-organises management and IT functions

Back office functions to be merged at oil giant

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Shell is reorganising its IT workforce in a move that could see further heavy job cuts.

The move is part of a company-wide overhaul that will reportedly see up to 24,000 jobs moved into shared business areas, and overlapping roles may be cut altogether.

IT is expected to be heavily affected, and may be combined with other functions including finance and human resources.

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The oil giant has already announced plans to lay off 3,200 staff after signing a £2 billion outsourcing deal with EDS, T-Systems and AT&T. It also has an application support deal running with IBM, Logica, Wipro and Accenture.

But it wants to do more to achieve cost savings, as well as improve its ability to react to changes in the market.

Additionally, the company is attempting to make individuals more accountable for successful project delivery and for the performance of different functions.

Shell will create a new arm, focused on project management and delivery. The new Projects & Technology operation will combine all of its project capabilities, including the services and technology focused on individual projects. The division will be led by Matthias Bichsel, Shell executive VP for exploration and production technology.



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