Shell is preparing to axe staff in its offshore wind business, as chief executive Wael Sawan pursues a move away from renewables.
The FTSE 100 oil giant is reportedly plotting the cuts after being hit by cost increases which have affected the entire offshore wind industry.
They are expected to begin “within months” and will affect staff in Europe, according to Bloomberg.
A Shell spokesman did not dismiss the report when contacted on Tuesday evening, only stating: “In line with our previously announced shift to prioritising value over volume in power, we are concentrating on select markets and segments to deliver the most value for our investors and customers through the energy transition.
“As a result of this, Shell is looking how it can continue to compete for offshore wind projects in priority markets while maintaining our focus on performance, discipline and simplification.”
It is the latest shift from green energy under Mr Sawan, who took over from Ben van Beurden at the start of last year.
Last summer, the chief executive set out plans to slash “structural costs” by as much as $3bn by the end of 2025 – partly by reducing exposure to renewables projects.
He also watered down previous commitments by the company to gradually cut oil production.
Subsequently, Shell also scrapped the role of global head of renewables, exited offshore wind projects in Ireland and France and announced plans to sell stakes in other renewable schemes.
The moves are partly aimed at reducing the valuation gap between Shell and its American rivals by focusing on the most profitable parts of the business – oil and gas production – and returning more cash to shareholders through dividends and share buybacks.
Mr Sawan has also suggested the company could quit the London stock market and move its listing to New York if the situation does not improve.
The planned cuts, which follow the departure of top wind executives Thomas Brostrom and Melissa Read, come after layoffs in the separate low-carbon solutions unit were revealed in October.
At least 15pc of the unit’s workforce is set to be axed, Reuters said last year.
That could lead to 200 jobs being cut in 2024, with another 130 under review. The unit has around 1,300 employees.
The shakeup under Mr Sawan has not been universally well-received within the company, however.
In September, hundreds of employees supported a letter expressing “deep concern” about Shell’s trajectory.
Mr Sawan insisted the company was focused on providing “affordable and secure energy to people every day… as we transition over time to a net zero emissions business”.
