Offshore wind turbines against a blue sky.
Offshore wind turbines against a blue sky.
Offshore wind turbines against a blue sky.

Ørsted announces major restructuration

Offshore wind giant Ørsted announces a series of measures aimed at restructuring the company following a challenging year. The Danish multinational will suspend dividends for the next three years, reduce its work force by up to 800 jobs and withdraw from offshore wind markets in Norway, Spain and Portugal.

These decisions are part of a recovery strategy after a turbulent period marked by an ambitious expansion in the US market and rising interest rates, which led to significant financial impairments.

Disruptions in the supply chain over the past two years have been another issue affecting not only Ørsted but the offshore wind supply industry as a whole. For Ørsted, these issues were compounded by its significant investments in the nascent US market, where the company faced difficulties in obtaining tax credits and meeting local manufacturing requirements.

As part of its revised strategy, Ørsted has also lowered its 2030 renewable energy capacity target from 50 gigawatts to a range of 35-38 gigawatts. This adjustment reflects the company’s intent to recalibrate its ambitions in line with current market realities.

The organizational shake-up at Ørsted includes changes in its leadership. Thomas Thune Andersen, the Chair of Ørsted, will step down after nearly a decade, following the departures of former finance chief Daniel Lerup and chief operating officer Richard Hunter last November.