Photo taken on September 4, 2023 shows the wind turbines of the Nysted offshore wind farm built by Danish wind energy giant Orsted in 2002-2003 in the Baltic Sea near Gedser in Denmark.
Thomas Traasdahl | Afp | Getty Images
Struggling wind farm operator Orsted announced plans on Thursday to cut its workforce by a quarter by the end of 2027, aiming to become more competitive and refocus its efforts on Europe.
Shares were up 0.7% in European trading on Thursday. The stock came under pressure earlier this year amid the White House’s concerted efforts to reduce renewable energy production in the United States.
Orsted share price
On his first day in office, US President Donald Trump signed an executive order suspending or renewing onshore and offshore wind leases. He also told reporters earlier this year that during his presidency, America was “not going to do the wind thing.”
Over the summer, the Trump administration ordered Orsted to halt construction on its Revolution Wind project off the coast of Rhode Island — which was 80% complete and expected to power more than 350,000 homes. A US court overturned that order last month.
In September, Orsted lowered its forecast for the full year, citing lower-than-normal offshore wind speeds across its offshore portfolio.
“Today we told our employees that by the end of 2027 we will say goodbye to many competent and valued colleagues who have contributed greatly to Ørsted,” Rasmus Errboe, the company’s CEO, said in a statement on Thursday.
Orsted currently employs around 8,000 people worldwide and has announced that it will reduce its workforce by 500 before the end of this year, resulting in a total of 2,000 layoffs. The company will reduce the number of employees through natural attrition, job cuts, divestments, outsourcing and layoffs, it said.
Annual savings for Orsted are expected to amount to 2 billion Danish crowns ($311 million) from 2028.
“This is a necessary consequence of our decision to concentrate our activities and the fact that we will finalize our extensive construction portfolio in the coming years – which is why we will need fewer employees,” Errboe added on Thursday. “At the same time, we want to create a more efficient and flexible organization and a more competitive Ørsted, ready to bid on new high-value offshore wind projects.”
— CNBC’s Sam Meredith and Spencer Kimball contributed to this article.
