Danish offshore wind giant Orsted is embarking on a sweeping plan to cut approximately 2,000 jobs, or a quarter of its workforce, by the end of 2027. The company’s leadership has pointed to shifting market priorities and extensive setbacks in the US as drivers behind a decision to restructure its global business.
Orsted is recalibrating its operations to emphasize its European market presence, aiming to achieve significant cost savings through job reductions and operational efficiency measures as it faces mounting turbulence in the global wind energy arena.
What Prompted Orsted’s Major Workforce Reduction?
Orsted’s Chief Executive, Rasmus Errboe, attributed the workforce cut to the completion of substantial construction projects and the company’s need to downsize in line with its narrower market strategy.
The announcement reflects the changing priorities of a firm that once sought rapid expansion but has now chosen to consolidate due to evolving business realities and performance pressures.
Errboe emphasized the practical necessity of streamlining operations to match current market conditions and the anticipated conclusion of key development portfolios over the next two years.
Orsted hopes these moves will set the stage for future stability and profitability, especially in Europe.
Did you know?
Orsted was founded as Denmark’s national energy company in 1972 and rebranded in 2017 to focus on renewable energy exclusively.
How Has US Policy Shaped Orsted’s Strategic Shift?
A key factor in Orsted’s decision was adverse US policy under President Donald Trump, who issued executive orders halting new offshore wind leases and mandating official reviews of active projects.
After years of headwinds, the firm announced it would retreat from American markets, following the abrupt stoppage of construction on the $6.2 billion Revolution Wind project off Rhode Island, which was already more than 80 percent complete.
Legal battles briefly allowed work to resume, but long-term uncertainty, higher costs, and daily revenue losses proved unsustainable.
These challenges exemplify the broader frustration facing European firms as they attempt to expand renewable infrastructure in shifting US policy landscapes.
What Impact Do Global Industry Challenges Have?
Orsted’s situation is one part of a broader crisis for the offshore wind sector. Suppliers face increased costs, fueled by inflation, rising interest rates, and supply chain disruptions, which have driven up project expenses by as much as 40 percent over the past two years.
With global investment in US renewables plunging by more than a third from last year, European companies have become wary of allocating capital to American projects.
Worldwide, China’s footprint in offshore wind is expected to continue expanding, reaching 45 percent of global installed capacity by 2030.
The International Energy Agency has recently downgraded its growth forecasts for offshore wind, reflecting systemic market and regulatory challenges.
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How Will Job Cuts Affect Orsted and the Sector?
Orsted will eliminate 500 positions by year-end, with the remaining reductions expected to come through natural attrition, divestments, and targeted layoffs over the next two years.
The company aims to save 2 billion Danish krona annually from 2028, strengthening its ability to weather volatility.
Industry observers warn that Orsted’s move could set a precedent for further downsizing among international wind energy firms facing similar business pressures.
The announcements come despite a slight uptick in Orsted's share price, which remains down sharply in 2025 amid the fraught policy environment.
What Is Next for Orsted’s Global Renewable Strategy?
Orsted is pivoting to an almost exclusive focus on European offshore wind, divesting from its American assets and investing in further technological innovation and cost-saving initiatives.
The company insists that these changes will enable it to compete effectively in a crowded and rapidly evolving market.
With industry-wide challenges continuing, questions remain about how wind energy giants will navigate the unpredictable intersection of policy, costs, and competition.
Success may depend on resilience and flexibility, alongside a steady commitment to renewable transformation.
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