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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The supermajor said the move, reported by Reuters and confirmed to Hydrogen Insight's sister publication Recharge, is “part of our drive to create more value with less emissions through a focus on performance, discipline, and simplification across Shell,” and aims to “strengthen [LCS’] delivery on our core low carbon business areas such as transport and industry”.

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.

Reuters reported that the cuts amount to about 15% of LCS’ workforce.

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.

This year has seen several high-profile departure from its renewable energy operation, including former green power chief Thomas Brostrom. The shift has seen concerns aired by some staff over the company's direction of travel.

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.”

This article first appeared in Hydrogen Insight's sister publication Recharge