Danish energy company Orsted is preparing to announce a substantial round of job cuts this week, potentially affecting up to 20% of its workforce, Danish newspaper Berlingske reported.
The company, which employs around 8,000 people globally, is expected to reveal the restructuring plan by the end of the week, Berlingske said, citing unnamed sources. Senior managers have reportedly already been briefed on the upcoming changes.
The anticipated cuts come as Orsted navigates financial and operational challenges, particularly in its U.S. offshore wind business. The company has encountered delays and cost overruns in several projects, including the 924MW Sunrise Wind project off the coast of New York.
An €8 billion rights issue is currently underway to raise capital for the completion of Sunrise Wind and to support other corporate funding needs.
Chief Executive Rasmus Errboe had previously indicated that workforce reductions could be a possibility. “We must adapt the company to the challenges we face,” Errboe said in an earlier statement, according to Berlingske.
The reported move highlights ongoing turbulence in the global offshore wind sector, as developers contend with inflation, supply chain issues, and rising interest rates that have put pressure on project viability and timelines.
Orsted has not commented publicly on the reported job cuts.
