Orsted to Cut UK Workforce Amid Global Redundancies as Offshore Wind Industry Faces Setbacks

Hundreds of employees at Orsted in Britain are facing uncertainty, following the announcement by the Danish wind energy giant that it will slash a quarter of its workforce globally. The company, a key player in offshore wind development, is set to reduce its staff from 8000 to 6000 by the end of 2027 as it completes major projects and pulls back from some international markets, particularly the United States. Cost-cutting measures are being implemented to stabilise the business as pressures mount within the renewable energy sector.

Orsted currently employs 1300 people across the UK and has not disclosed precisely how many positions might be affected locally. Although the UK remains a prime market for the company, all functions and regions are subject to these reductions. The group indicated this workforce cut will be managed through a mix of natural attrition, role eliminations, divestments, outsourcing, and compulsory redundancies.

This year alone, Orsted will make 500 staff redundant worldwide, with 235 of those roles based in Denmark. As construction activity tapers off towards the end of 2027, the organisation will adjust its size accordingly. The reductions come at a challenging time for Orsted, which has seen its market value plummet from a peak of 90 billion dollars in 2021 to approximately 25 billion dollars today. The company recently completed a heavily discounted 94 billion dollar rights issue to shore up its finances, after encountering political and regulatory headwinds in the US market that disrupted investor confidence and delayed or halted key projects.

Chief executive Rasmus Errboe stressed the difficult nature of the decision, highlighting the significant contributions of departing employees. He noted that the changes reflect a strategic focus on core markets, including the UK, where Orsted continues to operate 12 offshore wind sites. Although the company is proceeding with the construction of Hornsea 3, the world’s largest wind farm off Norfolk, it has paused Hornsea 4 due to increasing costs.

Despite these challenges, Orsted has affirmed its commitment to the UK and selected European markets. The company continues to navigate volatile supply chains and rising expenses, striving for a leaner, more competitive business model as the offshore wind sector grapples with global uncertainties.