The staff reductions are aimed at the unit whose task has been to develop solutions that reduce carbon dioxide emissions for transport and industry.
Oil giant Shell plans to cut 200 jobs next year, reports the news agency Reuters. The number may still increase, as the company has also said that it is evaluating the continuation requirements for 130 jobs.
The staff reductions target the unit, which has been responsible for producing low-carbon solutions for Shell. The unit currently employs a total of approximately 1,300 people.
Targeting the reductions to this particular unit is not a direct surprise. Shell has recently taken a step back on renewable energy. For example, the company has already terminated the role of renewable energy leader.
CEO of Shell Wal Sawan on the other hand, announced in the summer that despite its 2050 carbon neutrality goal, the company is not going to reduce its oil production at the pace it promised.
CEO Sawan, who came up at the beginning of this year, has outlined that Shell will aim to focus on projects with high margins in the future, such as oil production and increasing natural gas production.
However, Shell is not completely shutting down its unit specializing in low-carbon solutions. According to the company, tasks may be reorganized so that some of the unit’s employees are directed to work in Shell’s other business units.
The mission of the unit specializing in low-carbon solutions has been to develop solutions for the transport and industry sectors that help reduce carbon dioxide emissions. In addition, the unit also specializes in carbon dioxide recovery, among other things. Shell is not targeting cuts in this operating area.
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