Vestas to axe 220 jobs as part of MHI Vestas integration

Around 220 employees of Vestas Wind Systems A/S (CPH:VWS) will lose their job due to a reorganisation that the Danish turbine maker will carry out following the takeover of MHI Vestas Offshore Wind A/S.

The move will affect mainly employees in Denmark, but also in the UK, Vestas said on Thursday. No layoffs of hourly paid personnel are expected.

"It is never easy to make such a decision or say goodbye to good colleagues but integrating and simplifying two companies inherently creates overlaps between functions and it’s therefore necessary if we want to create a competitive and scalable organisation," said Vestas’ CEO Henrik Andersen.

More details will be available by the end of the month.

MHI Vestas will be integrated into Vestas’ business after in December 2020 the Danish company bought the 50% stake in the offshore wind turbine outfit held by its joint venture partner Mitsubishi Heavy Industries Ltd (TYO:7011) of Japan. The reorganisation of the enlarged business will require “combining, expanding, and simplifying existing functions within Vestas to meet market demand and create synergies,” the Danish firm said, adding that the move will make it more competitive.

The integration is planned to continue over the whole of 2021.

Following the announcement, Vestas has over 29,000 workers globally, around 6,000 of which in Denmark.

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