Wind giant Orsted to axe 2,000 jobs after US setbacks under Trump
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Orsted has faced higher costs from supply chain disruption and inflation, and the US President's moves against offshore wind projects.
PHOTO: AFP
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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 United States.
Orsted expanded rapidly over the past decade, but more recently, the company has faced higher costs from supply chain disruption and inflation, as well as 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’ll be finalising our large construction portfolio in the coming years – which is why we’ll need fewer employees,” chief executive Rasmus Errboe said in a statement on Oct 10.
When asked if the job cuts were due to the problems in the US, Mr Errboe told journalists that the decision was not related to specific US projects.
Orsted raised US$9.42 billion (S$12.2 billion) this week through a heavily discounted rights issue to shore up its balance sheet, following the challenges in the US where Mr Trump has cancelled millions in funding for offshore wind projects.
Orsted said 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.
Mr Errboe said that towards the end of the decade, the industry could see a period with few 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,” he said.
Mr Errboe said that 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.
The staff cuts and other efficiency measures are expected to give Orsted annual cost savings of approximately 2 billion Danish kroner (S$402.6 million) from 2028, the company added. REUTERS
