London-Based Oil Giant Shell Cuts Jobs In Low-Carbon Solutions Division & Lowers Hydrogen Business Exposure: Report

Shell PLC SHEL is reportedly planning to cut around 15% of the workforce at its low-carbon solutions division and reduce its exposure to the hydrogen business.

The LCS operations comprise the hydrogen and other businesses catering to decarbonizing the transport and industry sectors but don't include the renewable power business.

The moves come as part of the management focus on boosting profits, reported Reuters.

The report added that since he was appointed the CEO, Wael Sawan has planned to revamp Shell's strategy to focus on higher-margin projects, steady oil output, and grow natural gas production.

Also Read: Shell Tweaks Q3 Production Outlook Ahead Of Results Next Month: What's Going On?

The Energy giant plans to curtail 200 jobs in 2024 and is presently reviewing 130 positions to reduce the headcount in the unit, with some of the roles to be integrated into other parts of Shell, the report added.

The division also includes carbon capture and storage and nature-based solutions businesses, which will not be impacted by the job cut, as per the report.

"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," said the company, as per the report.

Also Read: QatarEnergy And Shell Seal 27-Year LNG Supply Pacts, Delivering Up To 3.5 MTPA To The Netherlands

Price Action: SHEL shares are trading higher by 0.25% at $66.83 on the last check Wednesday.