Shell to Cut Offshore Wind Business Layoffs as CEO Focuses on Profitability: Oil Giant Follows Financial Strategy with Reduction in Workforce

Shell Plc is restructuring its offshore wind business as CEO Wael Sawan refocuses the company’s efforts on delivering returns for shareholders. The British oil major is expected to start layoffs in Europe, with a particular emphasis on select markets and segments to create value for investors and customers.

Shell had previously invested heavily in offshore wind projects, leveraging its expertise in extracting oil and gas to become a leader in renewable energy technology. However, due to rising costs in the offshore wind sector and a renewed commitment to profitability, the company has decided to pull back from this green energy source.

Under Sawan’s leadership, Shell has been pushing its business divisions to improve performance and profitability. In an effort to reduce structural costs by up to $3 billion by the end of 2025, the company has already begun layoffs in its low-carbon solutions unit earlier this year. The downsizing in the offshore wind sector comes after several key executives, including Thomas Brostrom and Melissa Read, departed from Shell’s renewable power and UK offshore wind divisions.

Although Shell has established a team in the Netherlands to develop offshore wind farms, budget constraints have limited their ability to carry out previously planned projects. As the company shifts its focus to priority markets and instills a culture of performance, discipline, and simplification, staff reductions in the offshore wind business are set to follow.