Hundreds of losses | Hydrogen jobs under threat as Shell shrinks low carbon business unit
Oil giant will cut LCS workforce by a reported 15% as shift in strategy plays out
Oil giant Shell will cut 200 jobs at its Low Carbon Solutions (LCS) business – which includes hydrogen – during 2024 and put another 130 under review, the company confirmed, in a further sign of changes to its energy transition strategy under CEO Wael Sawan.
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LCS includes Shell’s Sectors and Decarbonisation arm focused on transport and industry and Emerging Energy Solutions, which includes hydrogen – but not its renewable power operation.
“We are simplifying the business structure and reducing the headcount in our LCS business, with some roles being integrated into other parts of Shell,” the oil giant said in a statement.
Sawan was Shell’s director for integrated gas, renewables and energy before taking over as CEO at the end of last year, but his leadership is now associated with a revitalised hydrocarbons businesses.
Against a backdrop of higher oil and gas prices and rising concerns about energy security, Sawan steered the company along a path that retained focus on upstream businesses and looked to consolidate its leading position in the production, and trading of liquefied natural gas (LNG).
This approach has included what Sawan describes as a “ruthless” focus on capital allocation, avoiding low-carbon investments that do not offer a clear pathway to profitability.
Shell added in its latest statement: “We remain committed to investing in viable low carbon business models and focusing on our strengths as we play our part in decarbonisation of the global energy system. This will include ensuring ongoing reliable delivery of energy and decarbonisation products, services, and solutions to our customers.”