The firm behind the world's largest offshore wind project - which is being constructed off the coast of Norfolk - has scaled back development targets and announced hundreds of job cuts.

Ørsted, the company developing the Norfolk coast windfarm, Hornsea 3, said it was looking at a reduction of 600-800 positions globally, with around 250 people to be made redundant.

It comes as the Danish firm confirmed it would pull back from markets in Spain, Portugal and Norway, and suspend dividend payments to shareholders covering the 2023-25 financial years.

It has also slashed its target for developing renewable energy capacity by 2030, reducing it from 50 gigawatts to 35-38GW.

The company said it was attempting to recover from an especially challenging 12 months, which saw the firm threaten to cancel Hornsea 3 due to soaring inflation.

However, a spokesman for the Ørsted said the Norfolk project would still go ahead, after successful negotiations with the government last year to increase the amount it can charge customers for energy.

The wind farm, which is being built 75 miles from Cromer, is set to generate enough power for three million homes by 2027.

Eastern Daily Press: A map of the Horsea Three cable path - from the wind farm area in the North Sea, and south through Norfolk to the substation just south of NorwichA map of the Horsea Three cable path - from the wind farm area in the North Sea, and south through Norfolk to the substation just south of Norwich (Image: Newsquest)

The spokesman said: "At Ørsted this week, we announced the outcome of a global portfolio review and the Hornsea 3 Offshore Wind Farm is continuing as planned.

"We took the final investment decision on the 2.9GW project – which will be the world’s single largest offshore windfarm – towards the end of last year and construction is progressing."

Ørsted has struggled in the face of high inflation, supply-chain disruption and rising interest rates, which have hit the windfarm industry across the board.

The company has also experienced problems in the US in attempting to secure tax credits.

Last year, it cancelled two big offshore windfarm projects in the US: the Ocean Wind I and II schemes, blaming a sharp rise in costs.