Vestas cuts 2,335 jobs - Engel stays

Vestas will reduce its fixed costs by more than EUR 150m – with full effect as from the end of 2012 – primarily through streamlining of support functions and closing of factories to align capacity with market demand. A total of 2,335 employees are expected to be made redundant.

Greater functional focus
The reorganisation will make Vestas an even more inclusive organisation. Executive Management is extended to six members to allow greater functional focus on all key parts of the value chain and to drive a stronger performance management.

Improving the performance of wind power plants
A Global Solution and Services unit will contribute to improving the performance of both existing and upcoming wind power plants and accelerate the development of the services and solution business.

Manufacturing is consolidated to capture cost synergies and reduce capital required for future growth as well as to increase flexibility in case of a prolonged industry slowdown.

1,600 jobs could be cut in the US
In addition to the planned layoffs of 2,335 employees in the coming months, Vestas prepares for a potential slowdown in the US in case the present Production Tax Credit (PTC) is not extended. This can result in lay off of an additional 1,600 employees at plants in the US. The potential savings in this respect will be in addition to the more than EUR 150m mentioned above.

President and CEO Ditlev Engel comments on the redundancies:
“I am truly sorry that we have to say goodbye to so many skilled and loyal Vestas colleagues. The expected layoffs are one of many steps that we now take in order to bring down costs allowing continuous development of our products and services and optimizing our already global presence in a highly competitive wind energy market.

Listen to the first comment from Ditlev Engel here.