London, UK-based offshore wind developer Corio Generation, which is backed by Macquarie Group, is planning staff reductions as the renewable power industry faces increasing cost pressures.

Since its inception in 2022, Corio has expanded with significant projects planned in the UK, South Korea and the US.

However, rising equipment and debt costs have impacted the offshore wind sector, leading to project cancellations and workforce reductions, as reported by Bloomberg.

Corio is implementing organisational changes to enhance efficiency and maintain focus on delivering projects in key markets.

As a result, a small number of employees will be leaving Cora Generation. The job cuts will affect under 10% of Corio's 270-person workforce, with some of the cuts to come from temporary staff who have completed work on a specific project.

Macquarie is reportedly considering options for Corio, which may include selling part or all of the business.

Despite the staff reductions, Corio has not announced plans to cancel any wind farm projects. The cuts reflect a broader trend of cost-saving measures in the offshore wind industry, which has encountered significant challenges recently.

Denmark's Ørsted, a leading offshore wind developer, announced in early 2024 that it plans to cut hundreds of jobs as part of its turnaround strategy following substantial losses in the US market.

In early December, TotalEnergies' CEO announced a pause on a major US project in which Corio is a partner, due to anticipated industry challenges under US President-elect Donald Trump.

In related news, Norway's Equinor also declared a 20% workforce reduction in its renewables division, citing challenges in the offshore wind sector.

The move aligns with similar strategies by European companies such as Shell and bp, which have reduced their renewables focus to concentrate on more profitable ventures. Equinor has been affected by cost inflation, high interest rates and supply chain issues.