(Bloomberg) — Shell is preparing to cut jobs at its offshore wind business as Chief Executive Officer Wael Sawan pulls the company out of the capital-intensive renewable energy sector.
The British oil giant plans to start cutting jobs, mainly in Europe, within the next few months, said the people, who asked not to be identified as the information is private.
“We are focusing on specific markets and sectors to deliver the greatest value for our investors and customers,” a Shell spokesman said. “Shell is reviewing how we can continue to compete for offshore wind projects in our priority markets, with a focus on performance, discipline and simplification.”
Shell had invested heavily in offshore wind and had hoped to use its experience in offshore oil and gas extraction to become a leader in the technology, but rising costs in the sector and a renewed focus under Mr. Sawant on returning profits to shareholders have led the company to move away from green energy sources.
Since taking over as CEO early last year, Sawant has been pushing each business unit to improve performance and profitability, and in June 2023 announced plans to cut “structural costs” by up to $3 billion by the end of 2025. The offshore wind job cuts follow cuts that began in the Low Carbon Solutions unit earlier this year.
Shell has put together a team focused on the Netherlands to develop and build offshore wind farms, but the company's spending limits have meant the large team has less work than initially expected.
The job cuts follow the departure of several key executives from the offshore wind business, including Thomas Brostrom, head of European renewables, and Melissa Reid, head of the UK offshore wind unit.
