Shell to stall hires and get "ruthless" on contractors

By Tom Bergin

LONDON (Reuters) - Royal Dutch Shell (RDSa.L) may trim its workforce with a plan to leave vacancies unfilled and to "ruthlessly" review its use of contract staff, according to an internal email seen by Reuters.

The email, sent by a senior executive in Shell's core exploration and production division, told managers "the world has changed" after crude prices collapsed from over $147/barrel in July to around $40/bbl 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 oil 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, the world's second-largest non-government-controlled oil company by market value, will continue with its 2009 graduate recruitment plan.