After a difficult 2023, energy giant Ørsted will lay off around 150 employees in Denmark. CEO Mads Nipper said this at a press conference after the annual report was presented on Wednesday. Here, he said that around 60 percent of the announced 250 layoffs will take place in Denmark. This corresponds to 150 layoffs.
- In light of the fact that we have around half of our employees in Denmark, it will be quite a significant proportion that will affect Denmark, says the CEO.
In connection with the annual report, it was announced that Ørsted will cut around one billion DKK in fixed costs. This means that between 600 and 800 positions will be cut globally. This corresponds to up to one in 11 of the total of almost 9,000 employees. This does not necessarily mean that there will be layoffs in all cases, but over the following months a total of 250 Ørsted employees will be dismissed.
- It is always a difficult decision for us, but it is the right decision for the company and for our shareholders to make cuts, says Mads Nipper.
The announcement comes in connection with Ørsted's annual accounts, which show that the company lost 20.2 billion DKK last year. This is primarily due to the fact that the company has written down a total of 28 billion DKK. In addition to layoffs, Ørsted has also decided not to pay dividends in 2023, 2024 and 2025.
This affects, among other things, the Danish state, which owns 50.1 percent of the shares in Ørsted. In the Finance Act for this year, the state has budgeted 3.1 billion DKK in revenue from dividends from Ørsted. Divestments at a faster pace are also intended to get Ørsted back on track. Just as the company has also cut its ambitions for future investments.
When it comes to growth ambitions, it now says that earnings without new partnerships are to increase by 8 percent per year towards 2030. Previously, the expectation was for an annual increase of 13 to 14 percent.
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