Ørsted to Cut 2,000 Jobs by 2027 in Strategic Shift

Core Viewpoint - Ørsted, the world's largest offshore wind developer, will reduce its workforce by 2,000 positions by 2027, representing a quarter of its current roles, in response to various challenges and to enhance competitiveness in Europe [1][2]. Group 1: Workforce Reduction - Ørsted plans to cut approximately 2,000 jobs by the end of 2027 as part of its strategic focus on Europe and to improve competitiveness [1]. - The decision to reduce the workforce is linked to the completion of its large construction portfolio in the coming years, necessitating fewer employees [2]. Group 2: Financial Measures - Ørsted recently completed a rights issue, raising $9.35 billion (59.56 billion Danish crowns) from existing shareholders to address immediate financing needs and strengthen its capital structure [4][5]. - The rights issue was heavily discounted, priced at 66.60 crowns ($1.04) per share, compared to a closing price of 122.35 crowns ($19.18) [5]. Group 3: Industry Challenges - The offshore wind industry has faced significant challenges, including regulatory changes, cost inflation, and high interest rates, which have negatively impacted project economics [4]. - Ørsted has encountered difficulties in the U.S. market, particularly due to regulatory obstacles under the Trump Administration affecting offshore wind projects [3].