European energy major Equinor said it is cutting 20% of the workforce, or about 250 jobs, in its renewable energy division due to continued economic challenges.

The Norway-based company said the layoffs are part of the company’s effort to streamline its operations. Equinor in recent months has canceled offshore wind projects in several countries, including France, Portugal, Spain, and Vietnam. It also has backed away from some of the company’s initiatives in Australia.

“We have decided to reduce the number of people working with renewables in Equinor,” a company spokesperson told Reuters, adding, “As we have said previously, we have exited some markets and prioritized existing markets and reduced the business development activities.”

Equinor has had a U.S. presence since 1987, primarily in oil and gas exploration. The company has said its U.S. investments are second only to those in Norway. The company has been a major player in the global offshore wind industry, which has been challenged in several markets by inflationary pressures, high interest rates, and supply disruptions. U.S. President-elect Donald Trump has vowed to kill the offshore wind industry in the U.S.

Industry analysts have said the current macroeconomic environment worldwide is putting pressure on the growth and profitability of the industry, which has resulted in several projects being delayed or canceled. The U.S. Energy Information Administration (EIA) recently said about 2,400 MW of planned installations off the U.S. coast have been canceled in the past year, including the Ocean Wind 1 and 2 projects in New Jersey.

Shell earlier this year exited the planned 2.4-GW SouthCoast offshore wind project off the Massachusetts coast. The company this spring said it would reduce its offshore wind division workforce through 2024, with most of those cuts occurring in the Netherlands.

BP also has scaled back its offshore wind plans, part of CEO Murray Auchincloss’ strategy to reduce the company’s exposure in the renewable energy sector.

Offshore wind is the focus of most of Equinor’s efforts in renewable energy. The company has said it will limit its focus to three large projects, including Britain’s Dogger Bank, Baltyk 2 and 3 in Poland, and Empire Wind 1 off the coast of Long Island in New York.

Equinor has previously said the company has a target of installing 12 GW to 16 GW of renewable energy generation capacity by 2030.

—Darrell Proctor is a senior editor for POWER (@POWERmagazine).