Prominent Wind Power Developer to Cut 25% of Employees Following Market Setbacks
Among the world's major wind power companies plans to execute major workforce cuts in the following years' time, affecting around one-fourth of its staff.
Scandinavian renewable energy major player intends to reduce roughly 2,000 positions from its 8,000-person workforce until late 2027, through a blend of layoffs, staff turnover and selling off portions of its business.
Initial Job Cuts Scheduled
The company, that has more than 1,200 workers in the United Kingdom, plans to carry out 500 job cuts until the end of the year, with 235 in its domestic market.
Government Measures Affect Projects
The move arrives a short time following political measures in the US caused the company's stock value to fall to historic bottom levels following development was halted on a almost finished offshore wind project.
The company, which is 50 percent owned by the Denmark's government, was obliged to secure in excess of $9 billion when governmental resistance in the US rendered it harder to secure funding for its pipeline of projects.
Initiative Terminations and Operational Shift
The decision to stop construction dealt a setback to the organization, which previously in recent months abandoned plans to build one of the Britain's major sea-based wind projects, explaining it no longer represented financial sense because of increased price rises and escalating costs in the industry's international production chain.
Even though a United States legal authority last month allowed the company to resume construction on the project, the company plans to redirect its business on Europe's coastal wind sector – and select areas in the Asian continent – after it has finished its existing portfolio of global projects.
Executive Viewpoint
The company needs to be "better optimized and adaptable," commented the CEO on a Thursday's update.
He continued: "This is a required result of our decision to center our operations and the fact that we'll be wrapping up our large construction portfolio in the following years period – therefore we'll need fewer employees."
At the same time, we want to create a more effective and flexible organization and a more competitive business, set to pursue new profitable coastal wind projects.
Stock Trends
The company's market value has risen modestly after it dropped to historic low points in August, but remains over half lower compared to this time the previous year.
The firm's stock value fell to 119 kroner on Thursday, falling 2.6% from the prior session.
