Ørsted to cut a quarter of workforce amid global setbacks and offshore wind refocus

Danish energy firm Ørsted has announced plans to cut around 2,000 jobs as it refocuses on offshore wind and its European operations, following a series of international setbacks – particularly in the US.

The company, which employs around 8,000 people worldwide, says the downsizing is needed to “improve its competitiveness”.

Ørsted, which employs 1,200 people in the UK, plans to cut 500 jobs by year-end, 235 of which will be in Denmark.

International troubles

Earlier this year, Ørsted shelved its huge Hornsea 4 offshore wind project in the UK, citing volatile supply chain costs and heightened construction risks.

The company has also faced significant headwinds in the US, where the Trump administration has taken steps to reduce support for renewable energy generation.

Last month, the administration ordered Ørsted to halt construction of its Revolution Wind project off the coast of Rhode Island – which was already 80% complete.

The ruling, along with continued US hostility toward renewable energy, has deterred offshore wind investors, prompting Ørsted to fundraise US$9bn to support its projects.

Strong pipeline

Ørsted maintains a leading position in the European offshore wind sector, specifically in the UK, where it operates 12 offshore wind farms with a total capacity of 5.6 GW – enough to power 6m homes annually.

The company is still constructing its Hornsea 3 project, which it says will be the world’s largest offshore wind farm with a capacity of 2.9 GW.

Rasmus Errboe, CEO of Ørsted, said: “We’re fully committed to finalising our 8.1 GW construction portfolio across three continents – Ørsted’s largest to date.”

“At the same time, we’re building a more financially robust and competitive company with solid earnings, which will increase as we complete our projects.”