Shell is planning to reduce its workforce by 200 positions in 2024 within its low-carbon solutions unit. A spokesperson confirmed that the company will switch some of the jobs in question to other divisions within Shell’s over 90,000-employee workforce, and an additional 130 roles will be put “under review” throughout 2024. Shell’s decision to downsize its workforce by 200 positions in 2024 within its low-carbon solutions unit was influenced by the company’s failure to secure a grant from the $7 billion federal funding allocated for hydrogen energy development earlier this month.
Shell’s low-carbon division helps spearhead the company’s transition to clean energy including hydrogen, given its pledge to become a “net-zero emissions energy business” by 2050. Shell CEO Wael Sawan is bullish on the company’s ability to decarbonize, despite the fact that its bottom line still relies on its oil and gas output. The job cuts are part of a broader overhaul by Sawan.
Shell is planning to invest $10-15 billion in low-carbon energy solutions over the next two years, which will include biofuels, hydrogen, carbon capture and electric vehicle charging. In July of last year, the company announced its investment in the creation of one of Europe’s largest hydrogen energy plants. In June of this year, the company announced that it would maintain its levels of oil production through 2030 in order to boost investor confidence as its renewables sagged.
Shell applied for a grant from the $7 billion federal funding allocated for hydrogen energy development earlier this month with a hydrogen hub in Louisiana. The company said it is still waiting for a formal explanation from the Department of Energy on why its Louisiana hub was not selected.
Shell has come under fire for its role in perpetuating climate change and has been sued in the past for its failure to keep up with the climate goals outlined in the Paris Agreement. It is also currently among the oil giants that California is suing for allegedly deceiving the public about the realities of climate change.
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