This photo taken on September 4, 2023 shows the windmills at the Nested offshore wind farm built by Danish wind energy giant Ørsted in 2002-2003 in the Baltic Sea near Gedser, Denmark.
Thomas Trusdale | AFP | Getty Images
Embattled wind farm operator land It announced on Thursday that it intends to cut its workforce by a quarter by the end of 2027, in a bid to become more competitive and refocus its efforts on Europe.
Shares rose 0.7% in European trading on Thursday. The stock came under pressure earlier this year amid a concerted effort from the White House to limit renewable energy generation in the United States.
Ørsted stock price
On his first day in officeUS President Donald Trump signed Executive order Suspension of new or renewable onshore and offshore wind energy leases. He also told reporters earlier this year that during his presidency, America would “never do anything like the wind.”
Over the summer, the Trump administration Ørsted ordered construction to stop At its Revolution Wind project off the coast of Rhode Island, which is 80% complete and set to power more than 350,000 homes. American court She canceled that order last month.
In September, Orsted lowered its full-year guidance, citing lower-than-normal offshore wind speeds across its offshore portfolio.
“Today, we told our employees that between now and the end of 2027, we will say goodbye to many skilled and valued colleagues who have contributed significantly to Ørsted,” Rasmus Erbö, the company’s CEO, said in a statement on Thursday.
Ørsted currently employs about 8,000 people worldwide, and said it will reduce the number of its employees by 500 before the end of this year, bringing the total reduction to 2,000 employees. The company said it will reduce employee numbers through natural attrition, job cuts, divestments, outsourcing and layoffs.
Orsted’s annual savings are expected to reach DKK 2 billion ($311 million) from 2028.
“This is a necessary consequence of our decision to focus our business and the fact that we will be finalizing our large construction portfolio in the coming years – which is why we will need fewer employees,” Erbaugh added on Thursday. “At the same time, we want to create a more efficient and flexible organization and a more competitive Ørsted Company, ready to bid on new offshore wind projects of increasing value.”
— CNBC’s Sam Meredith and Spencer Kimball contributed to this article.
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