Shell has announced that it is cutting around 15% of its low-carbon division workforce and scaling back its hydrogen business as part of a CEO overhaul.
The cuts come as Shell CEO Wael Sawan seeks to streamline the company’s operations and focus on its core businesses of oil and gas production. Sawan has said that he believes that Shell can best contribute to the fight against climate change by investing in new technologies to reduce emissions from its existing operations.
The cuts to Shell’s low-carbon division will affect around 350 jobs. The division is responsible for developing and commercializing new low-carbon technologies, such as hydrogen and carbon capture and storage.
Shell has also said that it will scale back its hydrogen business. The company has said that it will focus on developing hydrogen for use in heavy industries, such as steelmaking and chemicals production. However, Shell will no longer pursue the development of hydrogen for use in transportation.
The cuts to Shell’s low-carbon division and its hydrogen business have been met with criticism from some environmental groups. These groups argue that Shell is not doing enough to transition to a low-carbon future.
However, Shell has defended its decision, saying that it is still committed to investing in low-carbon technologies. The company has said that it will continue to invest in hydrogen for use in heavy industries, and it will also invest in other low-carbon technologies, such as carbon capture and storage.
It remains to be seen whether Shell’s decision to cut jobs and scale back its low-carbon business will have a negative impact on the company’s ability to meet its climate goals. However, it is clear that Shell is shifting its focus away from low-carbon technologies and towards its core businesses of oil and gas production.