Leading Wind Power Company Plans Significant Portion of Staff Following Market Setbacks
A top the world's largest wind farm developers will implement major staff layoffs over the following years' time, targeting about one-fourth of its workforce.
Scandinavian wind energy leader aims to trim about 2,000 jobs from its 8,000-strong team until late 2027, using a combination of layoffs, staff turnover and offloading portions of its business.
Immediate Job Cuts Scheduled
The organization, which employs in excess of 1,200 employees in the United Kingdom, plans to make 500 layoffs until the end of the year, including 235 positions in its domestic market.
Government Decisions Affect Business
The decision follows some time following administrative decisions in the US led to the company's market value to drop to historic lows after construction was stopped on a near-complete sea-based wind farm.
The company, being 50% controlled by the Danish government, was obliged to obtain more than nine billion dollars after policy opposition in the United States caused it to be tougher to attract backers for its pipeline of initiatives.
Development Terminations and Operational Shift
This order to stop construction struck a blow to the firm, which earlier recently cancelled plans to build among the UK's major sea-based wind projects, stating it not anymore offered financial feasibility owing to increased cost increases and rising expenses in the market's worldwide supply network.
While a US legal authority in recent weeks permitted the company to recommence construction on the initiative, the firm plans to refocus its business on the EU's offshore wind sector – and certain markets in the East – once it has finalized its existing pipeline of international projects.
Management Viewpoint
Our organization must to be "better optimized and agile," commented the top executive during a recent update.
He added: "This is a necessary result of our decision to focus our business and the fact that we'll be finalising our large development pipeline in the next years – which is why we'll need less staff."
Additionally, we want to create a more effective and flexible organisation and a more competitive company, set to bid on additional value-accretive coastal wind initiatives.
Financial Results
The company's share price has increased modestly following it fell to record low points in recent months, but remains 53% lower compared to the same period a year ago.
Its share price dropped to 119 Danish kroner recently, down 2.6 percent from the day before.
