Orsted axes quarter of jobs, pivots to Europe after US setbacks under Trump

[COPENHAGEN] Orsted, the world’s biggest offshore wind farm developer, will cut about 2,000 jobs by the end of 2027, a quarter of its workforce, and will focus more on Europe after setbacks in the US.

Orsted expanded rapidly over the past decade, but more recently has faced higher costs from supply chain disruption and inflation, plus the impact of US President Donald Trump’s actions against offshore wind projects.

“This is a necessary consequence of our decision to focus our business and the fact that we will be finalising our large construction portfolio in the coming years, which is why we will need fewer employees,” CEO Rasmus Errboe said on Thursday (Oct 9).

When asked if the job cuts were due to the problems in the US, Errboe told journalists the decision was not related to specific US projects.

Orsted raised US$9.42 billion this week through a heavily discounted rights issue to shore up its balance sheet, following the challenges in the US where Trump’s opposition to renewable energy has created uncertainty for the industry.

Orsted said that the job cuts would coincide with a decline in construction activities and would help make the group more competitive as it concentrates more of its activities on Europe.

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Errboe said towards the end of the decade, the industry could see a period with little or no new offshore wind projects, but he remained positive on its long-term future.

“In many ways, you see the fundamentals in Europe moving in the right direction when it comes to offshore wind,” Errboe said.

He said political support for offshore wind is driven by energy security and the need for electrification, with suppliers and contractors to the industry turning their focus to Europe, while oil and gas companies step back from renewable energy.

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The staff cuts and other efficiency measures are expected to give Orsted annual cost savings of approximately two billion Danish crowns (S$402 million) from 2028, the company added.

Orsted’s share price rose 0.9 per cent by 1142 GMT. REUTERS