Shell CEO Wael Sawan Extends Job Cuts to Trim Cost

Shell has announced further job cuts as part of its low-carbon transition, Bloomberg News said on Thursday, quoting people who know about the situation.

The company is getting rid of roles across different divisions, and giving those who are affected the choice of either taking severance packages or looking for other positions within Shell, the report said.

To achieve the cuts, Shell will need to improve its portfolio, find new ways to save costs and streamline its organization, a Shell spokesperson said.

“We don’t have any official targets, but we will always aim to adjust the activities that create the most value.”

Shell announced in October that it will fire around 15% of the staff at its low-carbon solutions division and downsize its hydrogen business, as part of CEO Wael Sawan’s strategy to increase profits.

Shell insiders said that Shell leaders shared the news of the job cuts and the structural changes at several meetings with employees last week.

Shell’s businesses that deal with carbon capture and storage, and nature-based solutions, which are also part of the LCS division, will not be affected by the cuts, the insiders said.

The energy company said that it will focus on heavy mobility and industry and cut down its hydrogen light mobility operations, which offer solutions for small passenger vehicles. It will also merge two of the four general manager roles in the hydrogen business.