Houston-based Shell Oil Co. plans to cut up to 800 information technology (IT) positions in the United States in an effort to save about $850 million annually beginning in 2008.

The reductions, part of Shell’s “IT Vision” plan, will be made through attrition, reduced number of contractors, employee reassignments and voluntary severance packages, and are expected to be completed by 2006. Shell also will outsource more work to India and Malaysia.

Shell currently has about 9,000 IT staff worldwide, including 2,200 in the U.S. who are mostly based in Houston.

In addition to the reductions, Shell also is reducing the number of computer programs and software applications it uses, according to Anne Kniesley, manager of corporate media relations. Currently, Shell has hundreds of IT contracts, but it plans to reduce the number to less than 20. Kniesley said the changes were “about reducing costs and improving quality.”

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