Orsted to axe a quarter of all workers as thousands of jobs go
Troubled offshore wind giant says 'rightsizing' necessary as new projects dry up and global focus narrows
Troubled offshore wind giant Orsted said it will cut 2,000 jobs – or 25% of its workforce – by the end of 2027 as it focuses on Europe and completes wind farms.
By the end of 2027 Orsted will employ some 6,000 staff, down from around 8,000 now.
The cuts will happen through a mix of “natural attrition, a reduction of positions, divestment, outsourcing, and redundancies”, it said.
Orsted expects to save about DKr2bn ($311m) annually after 2028 as a result of the cuts and other efficiency measures.
CEO Rasmus Errboe said: “Today, we’ve told our employees that from now and until the end of 2027, we’ll be saying goodbye to many skilled and valued colleagues who’ve contributed greatly to Orsted.
“However, 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.”
Errboe added: “We’re fully committed to finalising our 8.1GW construction portfolio across three continents – Orsted’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.”
Overwhelmingly, the cuts have come to Orsted’s Danish staff, which have dropped from 4,186 in mid-2024 to 3,793 at the same point this year – a loss of 393. Indeed, other markets, such as Malaysia, Poland and Taiwan, have seen noteworthy increases in staff numbers in the same period.
Sydbank chief analyst Jacob Pedersen said with the timetable for cuts now out in the open, and the developer facing construction acticvity potentially grinding to a halt after 2027 once the current crop of wind farms is completed, Orsted could face a "balancing act" in ensuring key staff stick around long enough to ensure those projects aren't affected.
Pedersen said in a note to clients: "The layoffs at Orsted will take place right up to 2027 as the need for employees in various job functions decreases as a result of lower growth ambitions and the completion of offshore wind projects. In the interim period, it would be logical for Orsted employees to start looking for other challenges, knowing that there is an end date for Orsted employment."