Wind Energy Firm Ørsted to Reduce Workforce by a Quarter Amid Industry Challenges
One of the world’s largest windfarm developers will reduce its workforce by 25% over the next two years following a series of difficulties in the sector.
Danish energy company Ørsted intends to cut around 2,000 jobs from its 8,000 employees by 2027 through layoffs, natural turnover, and the sale of parts of its operations.
The firm, based in Oslo and employing over 1,200 people in the UK, expects to eliminate 500 positions by the end of the year, including 235 in Denmark.
The decision comes after Ørsted’s share price hit a record low when work was abruptly suspended on a nearly finished windfarm near Rhode Island due to political intervention in the U.S.
The company, half-owned by the Danish government, had to raise more than $9 billion after political resistance in the U.S. made it difficult to secure investment for its planned projects.
This setback followed Ørsted’s earlier cancellation of one of the UK’s biggest offshore windfarm developments, citing economic challenges from inflation and rising supply chain costs.
Although a U.S. court recently permitted work to resume on the Rhode Island project, Ørsted plans to concentrate on Europe’s offshore wind market—along with select regions in Asia—after completing its current global projects.
Rasmus Errboe, Ørsted’s chief executive, stated on Thursday that the company must become “more efficient and flexible.”
“This adjustment is needed as we narrow our focus and complete major projects, requiring fewer employees in the coming years,” he explained.
“We are also improving our structure to remain competitive and better positioned for future offshore wind opportunities.”
Since hitting a historic low of 99.54 Danish kroner in August, Ørsted’s market value has recovered slightly but remains 53% below last year’s level. Shares closed at 119 DKK (£13.8) on Thursday, a 2.6% drop from the previous day.
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