Vestas to slash another 1,400 jobs ahead of tough 2013

Aug 22, 2012 - Denmark-based wind turbine maker Vestas Wind Systems A/S (CPH:VWS) unveiled today plans to cut another 1,400 jobs to prepare for a challenging 2013, which would drive up special items to between EUR 75 million (USD 93.5m) and EUR 125 million in 2012.

At the beginning of the year, the company launched a reorganisation programme that envisaged 2,335 job cuts in 2012, of which so far 1,000 have been implemented. However, now Vestas expects its shipments to decline to around 5 GW in 2013 so it would expand the measures in order to secure profitability, according to the company's second-quarter financial report, published today. This second round of lay-offs is expected to lead to a reduction in fixed costs of over EUR 250 million from the end of this year.

A total 55% of the remaining 2,700 job cuts will be in Europe and Africa, 25% in the Asia Pacific region and 20% in the Americas.

In today's financial report, Vestas said that a weak order intake in the first half of 2012, in combination with delayed grid connections in China, would lead to lower-than-expected shipments in the full year. Deliveries are now seen at 6.3 GW, versus 7 GW in the previous guidance.

(EUR 1.0 = USD 1.247)

Choose your newsletter by Renewables Now. Join for free!