Fortescue will sack hundreds of workers across its green technology division in another blow to the Andrew Forrest-led company’s net zero ambitions.
The company’s Fortescue Zero subsidiary – its green tech division – will let go of several hundred of its 1100-plus employees across Australia and the United Kingdom.
It started informing employees when they began showing up to work at the 1000-worker strong UK arm on Tuesday, according to The Australian.
Fortescue Zero has about 100 staffers in Australia as well, and some of these workers will be impacted by the cuts.
Mr Forrest’s company has walked back plans to build green technology equipment, and will rather focus on research and development.
Fortescue has invested about US$1 billion in the UK business since it acquired the arm, formerly known as Williams Advanced Engineering, in 2022.
The company’s chief executive of growth and energy Gus Pichot said most of the sackings would not be in Australia.
“Regrettably, the changes are likely to impact some of our workforce, with the majority of those potentially affected in the United Kingdom,” Mr Pichot said, per The Australian Financial Review.
“This is never an easy decision, and Fortescue is dedicated to guiding the transition with compassion, respect and support.”
This marks another blow to Fortescue’s bold ambition of producing zero emissions by the year 2030.
The company faced a significant setback earlier this year when two of its green hydrogen projects collapsed.
Fortescue in July informed shareholders it was ditching its Arizona Hydrogen Project in the United States and its PEM50 Project in Queensland’s Gladstone “following a detailed review”.
The projects’ failure will blow about a US$150m ($227m) hole in the energy and mining giant’s financial results.
On the US project’s failure, Fortescue chief executive of growth and energy Gus Pichot told analysts the shift away from green energy under Trump hurt the project’s viability.
While the company blamed the collapse on the shift in policy from the Trump administration, the Albanese government has earmarked billions of taxpayer dollars into green hydrogen in Australia.
Fortescue also rolled back plans to make 400 electric-powered haul trucks with German company Liebherr as it looks to China for cheaper equipment.
Mr Forrest on the weekend told Britian’s The Telegraph he would build the powertrains for the trucks in China instead of in the UK.
It also follows the company sacking 700 workers last year when it consolidated its energy and mining arms into one division.