Faced with numerous headwinds, Ørsted will slash its workforce numbers by 2,000 by 2027, eliminating a quarter of its current roles, the world’s largest offshore wind developer said on Thursday.
Fresh off its $9.35 billion rights issue to raise funds from existing shareholders, Ørsted announced today it is taking another step in the execution of its strategic priorities by reducing its organization by about 2,000 positions by the end of 2027.??
The company will slash jobs as it will focus more on Europe and will look to improve its competitiveness, Ørsted said.
“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,” Ørsted CEO Rasmus Errboe said.
The Denmark-based offshore wind developer has faced mounting challenges in the United States, where the Trump Administration is obstructing the construction of offshore wind projects, including the fully permitted 704-megawatt (MW) Revolution Wind being built by Ørsted offshore Rhode Island and Connecticut.
Regulatory changes, cost inflation, and high interest rates have impacted project economics in the offshore wind industry in the past two years. The impact has been felt by Ørsted, which turned to its existing shareholders to raise capital to cover immediate financing needs, manage risks from regulatory uncertainty in the U.S., and strengthen its capital structure.
Ørsted has just completed its rights issue at a heavily discounted price, raising the target amount of 59.56 billion Danish crowns, equal to some $9.35 billion.
According to the company, 99.3% of the issue was subscribed for by existing and new shareholders, but of that total, the Danish state subscribed for just over 50%.
The issue was priced at 66.60 crowns apiece, or $1.04—a heavy discount on the wind power developer’s share price, which at closing on Monday stood at 122.35 crowns, or $19.18.
By Michael Kern for Oilprice.com
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