Vestas cutting 400 jobs, mostly in Denmark

Danish wind turbine maker Vestas Wind Systems A/S (CPH:VWS) today said it will lay off about 400 employees in Europe, most of which in Denmark, as it is stopping certain projects with immediate effect.

The company is optimising parts of its portfolio and focusing on execution and long-term competitiveness. It is cutting jobs that do not directly support 2020 deliveries.

“Vestas must adapt its technological development to ensure we are building the right solutions to address [a changing market], as well as the complexity we face from trade wars, tariffs, changing industry structures, and most recently a global pandemic,” the company said

The locations in Aarhus and Lem will be the hardest hit as Vestas is discontinuing technology projects there. The temporary facility in Viborg, set up for MHI Vestas Offshore Wind projects, will also be closed.

The registered directors in Executive Management will also take a 10% pay cut through the end of the year.

“We’re in a period of high uncertainty and by making a strategic decision on our product portfolio and reduce complexity, we sustain our competitiveness in the future and ensure we can adjust quickly to COVID-19 challenges,” said president and chief executive Henrik Andersen.

The measures to be taken do not impact the suspension of Vestas’ guidance for 2020. The company’s global workforce remains above 25,500, including roughly 4,000 in Denmark.

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