(Bloomberg) -- Corio Generation Ltd., an offshore wind developer backed by Macquarie Group Ltd., is laying off staff as companies across the renewable power industry try to cut costs.
Since its launch in 2022, Corio has grown rapidly with major projects planned off the coasts of countries including the UK, South Korea and the US. But soaring equipment and debt costs have hurt the offshore wind industry, leading to project cancellations and staff reductions at major developers.
Corio is making organizational changes and is working to remain efficient and focused on the delivery of projects in key markets, a spokesperson for the company said. As a result of those changes, a small number of people will be leaving the company.
In total, the job cuts will affect less than 10% of Corio’s roughly 270-person workforce, according to a person familiar with the issue who asked not to be identified discussing a private matter. Some of the cuts will come from temporary staff who’ve completed work on a specific project, the person said.
The moves come with Macquarie considering options for Corio that could involve selling some or all of the business.
The company isn’t eliminating plans to develop any of its wind farm projects, but the reductions in staff reflect a broader belt-tightening in the offshore wind industry that’s faced tough hurdles in recent years. Denmark’s Orsted A/S, the biggest offshore wind developer outside China, said earlier this year that it planned to cut hundreds of jobs as part of a turnaround plan following steep losses driven by its business in the US.
Last week, the chief executive officer of TotalEnergies SE said the company was pausing development on a major project in the US because of expected obstruction to the industry from US President-elect Donald Trump. Corio is a partner of Total in that development.
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