Inspenet, October 26, 2023.
As part of the strategy to boost its profits, Shell plans to cut 200 jobs (about 15% of its workforce) belonging to the low carbon solutions division and reduce its participation in the hydrogen business.
These staff cuts and organizational changes are part of the initiative led by CEO Wael Sawan to focus on higher margin projects, maintain stable oil production and increase natural gas production.
Jobs will be eliminated in 2024
Over the course of 2024, Shell will cut 200 jobs and put another 130 under review at its unit, which currently has around 1,300 employees. The company confirmed these changes in response to a Reuters query. Some of these functions will be integrated into other areas of Shell, a company with a workforce of more than 90,000 people.
” We are transforming our Low Carbon Solutions (LCS) business to strengthen its delivery in our core low-carbon business areas, such as transportation and industry ,” the company said.
LCS operates in the field of hydrogen and other sectors aimed at decarbonizing transport and industry, excluding renewable energies from its portfolio. Shell’s senior management held public meetings last week with the LCS division, at which job cuts and adjustments to the organizational structure were announced.
The division also encompasses Shell’s carbon capture and storage and nature-based solutions, which will not be affected by this round of cuts. The most significant changes focus on the hydrogen business, as the company plans to substantially reduce its operations in the light hydrogen mobility sector, aimed at the development of technologies for passenger vehicles.
This decision to abandon light mobility comes after the departure of the company’s former director, Oliver Bishop, several months ago. Shell, at one time, was an early sponsor of hydrogen-powered vehicles. However, in recent years, a number of hydrogen refueling stations have closed around the world, including the UK, as consumers have switched to electric vehicles.
In the previous year, the company started construction of an electrolyzer plant with a capacity of 200 megawatts in the Netherlands, which is the largest in Europe and is dedicated to the production of green hydrogen.
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