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LONDON, UK: This week, Shell Oil said that as part of CEO Wael Sawan’s drive to boost profits, it will cut at least 15 percent of workers at its low-carbon solutions division and scale down its hydrogen business.
Sawan, who became CEO in January, pledged to restart Shell’s strategy to focus on higher-margin projects, steady oil output, and grow natural gas production, leading to staff cuts and organizational changes.
Reuters reported that as part of the company’s efforts to reduce the unit’s headcount totaling some 1,300 employees, Shell will cut 200 jobs and place another 130 positions under review in 2024.
Shell added that some of these roles will be integrated into other parts of the company, which employs more than 90,000 people.
“We are transforming our Low Carbon Solutions (LCS) business to strengthen its delivery on our core low-carbon business areas such as transport and industry,” Shell said.
The company’s LCS operations include its hydrogen and other businesses aimed at decarbonizing the transport and industry sectors but do not include its renewable power business.
The main focus of the changes has been the hydrogen business.
Shell said it plans to sharply scale back its hydrogen light mobility operations, which develop technologies for light passenger vehicles and will focus on heavy mobility and industry.
It will also merge two of four general manager roles in the hydrogen business, it added.
The reversal of the strategy to focus on the light mobility sector follows the departure of the business manager, Oliver Bishop several months ago. Bishop now leads rival BP’s global hydrogen mobility business.
U.S. rivals Exxon Mobil and Chevron have doubled down on fossil fuel production and recently announced major acquisitions of oil companies.
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