Oil giant Shell is on the verge of carrying through with a large number of previously announced job cuts and reassignments, according to an employee e-mail sent by CEO Peter Voser.
The ranks of Shell’s upper level management were cut by about 20 percent, from 750 to 600 people, by the end of July as part of a first step in the reorganization process announced by Voser earlier this year.
August was spent “re-designing” departments and groups within the company, according to the Aug. 31 memo.
“The leaders of the affected organisations will now start communicating further details as they are finalized,” Voser said in the e-mail, while filling all the positions of the new organization will happen during October and November.
Shell previously said its reorganization — which is aimed at improving efficiency and accountability — will affect about 24,000 out of 102,000 workers, but they may not all be job cuts. The company employs nearly 13,000 people in the Houston area.
Below is the text of the message sent by Voser:
“I wrote to you on 31st July confirming the Transition 2009 appointments at the so-called EC-2 level. During August, organisations have worked hard at re-designing the rest of their affected organisations or adapting & accelerating their own change journeys. I have reviewed these designs and directionally support -although further refinements are required in certain areas.
The leaders of the affected organisations will now start communicating further details as they are finalised. We will also continue & complete appropriate Transition 2009 related consultation with a view to resourcing the relevant positions in October and November.
I stated already that we had significantly reduced the number of senior leaders as part of Transition 2009. Overall I expect that Transition 2009 and our other change journeys will result in significant ongoing staff reductions. In my recent messages around our mid year results, I stressed that we continue to operate in a challenging environment. That reinforces the urgency for us to step up our cost reduction efforts. I will be looking to see Transition 2009 and our other Top Quartile change programs hardwired into 2010 business plans and I will monitor performance against delivery. You should expect to hear from your leadership on this on a regular basis.
I know our various restructurings and cost reduction programs create uncertainty. We are moving quickly to implement these. Thank you for your continued professionalism and dedication in this period of continuing change.”