Equinor (EQNR, Financial), the Norwegian energy giant, has announced a 20% reduction in its renewable energy workforce, affecting approximately 250 employees. This decision is part of a broader strategy to streamline operations and focus on fewer, more strategic projects.
The global offshore wind industry has faced challenges due to cost inflation, high interest rates, and supply chain bottlenecks, impacting the ambitious goals of key players like Equinor. Earlier this year, Equinor withdrew from offshore wind projects in Vietnam, Spain, Portugal, and France, and scaled back plans in Australia.
Equinor's actions mirror those of its European competitors, Shell (SHEL) and BP (BP), which have also scaled down their renewable and low-carbon operations to concentrate on more profitable ventures.
Looking ahead, Equinor plans to reduce its participation in tenders and auctions, focusing instead on the construction of three major offshore wind projects: Dogger Bank in the UK, Empire Wind 1 in the US, and Baltyk 2 and 3 in Poland.
Despite these changes, Equinor remains committed to its renewable energy target of achieving an installed capacity of 12-16 gigawatts by 2030. Any potential adjustments to this target will be addressed in the annual capital markets update scheduled for release in February.
