September 28 (Renewables Now) - Vestas Wind Systems A/S (CPH:VWS) said today it will lay off about 400 employees as it adjusts its footprint to a shift in growth from established wind markets to high-growth markets mainly outside of Europe.
Some 75% of the job cuts will be in northern and central Europe. The redundancies will mainly affect white collar staff, especially in Denmark and Germany. The Danish wind turbine maker said that production capacity will be relatively unaffected by the layoffs. An exception is its factory in Hammel, Denmark, which produces wind turbine converters. The plant will let some 80 workers go and will focus more on introducing new products.
Overall the planned layoffs account for 1.6% of Vestas' global workforce, which numbered 24,300 people as of June 30.
"It’s always hard to let good, hardworking colleagues go, but with most of market growth expected to be outside of Europe, our global footprint must reflect the market development we see in order to grasp those growth opportunities," said chief executive and president Anders Runevad.
The job cuts will result in annual savings of around EUR 30 million (USD 34.9m) from 2019, according to the announcement.
(USD 1 = EUR 1.162)