Shell to Cut Jobs in Offshore Wind Division as Focus Shifts to Oil and Gas

British energy giant Shell is set to reduce its workforce in the offshore wind division, with layoffs expected to commence within months, mainly in Europe. This move is part of CEO Wael Sawan’s strategy to pivot the company’s focus back to oil and gas.

CEO Shell Wael Sawan

A Shell spokesperson explained, “We are concentrating on select markets and segments to deliver the most value for our investors and customers. Shell is looking at how it can continue to compete for offshore wind projects in priority markets while maintaining our focus on performance, discipline, and simplification.”

This strategic shift comes after Shell had heavily invested in offshore wind projects, leveraging its expertise in marine oil and gas extraction to position itself as a leader in renewable energy. However, rising costs in the offshore wind sector and a renewed emphasis on shareholder returns have prompted the company to reassess its priorities.

Sources familiar with the matter, who spoke on condition of anonymity, revealed that the spending limits imposed by the new strategy have left Shell’s offshore wind team, particularly in the Netherlands, with less work than anticipated. This has led to a series of staff reductions and the departure of several key executives, including Thomas Brostrom, the head of Shell’s European renewable power division, and Melissa Read, the head of its UK offshore wind unit.

This development reflects Shell’s broader shift in its energy transition strategy, focusing more on performance and financial discipline rather than expanding its renewable energy volume. The company remains committed to participating in offshore wind projects but will prioritize those in select markets where it can deliver the most value.