Vestas lays off 1,300 employees in Denmark

Sluggish wind turbine sales force further job cuts at Vestas

January 12th, 2012 11:05 am| by admin
facebooktwittergoogle_pluspinterestmail

With a goal to reduce its fixed costs by more than 1.1 billion kroner by the end of the year, Vestas announced this morning that it is laying off 1,300 employees at its facilities in Denmark. An additional 1,000 employees will be cut worldwide.

In Denmark, 750 salaried employees will be let go along with 550 hourly workers.

Vestas is closing a factory in the western Jutland town of Varde and trimming administrative services in Hammel, Varde, Lem, Ringkøbing and at the company’s headquarters in Aarhus.

The company blamed the layoffs on the global financial crisis and a sluggish market for wind turbines in the United States and said that support functions are being streamlined to adjust capacity to meet market demand.

In a statement released this morning, VestaÂ’s CEO, Ditlev Engel, expressed regrets at the job losses.

“I am truly sorry that we have to say goodbye to so many skilled and loyal Vestas colleagues,” said Engel. He went on to say that the changes were necessary “in order to prepare for a market with low growth and increased competition”.

Last year, Vestas laid off 3,000 workers worldwide after posting a 24 percent drop in the third quarter.

Vestas also said the slowdown in the US could result in the layoff of an additional 1,600 employees.

After todayÂ’s cutbacks, Vestas will have 5,300 employees in Denmark and around 20,400 worldwide.

In her joint press conference with European Commission president José Manuel Barroso today, PM Helle Thorning-Schmidt called the Vestas news an “enormous setback” but that Denmark and the EU should continue to make investments in green technology.

Mogensen on the brink of becoming the first Dane in space (photo: Andreas Mogensen)
Dane following in the footsteps of Gagarin
Tomorrow morning at 06:37 the Danish astronaut Andreas Mogensen will become...
Inadequate drying is harmful because of the increased risk of mould (photo: Teknologisk Institut)
New tech tool to save time and money in construction industry
The technological institute Teknologisk Institut has developed a new web-ba...
The project is reaching the final phase (photo: Nationalmuseet)
Dismantling and excavation of medieval church reaches final stage
Next week work will begin on the final phase of a project with cultural and...
O'Leary looks momentarily distracted, like he's just seen one of his planes (photo: Hasse Ferrold)
Ryanair still has huge plans in Copenhagen
The Irish budget airline Ryanair still has ambitious plans to quadruple its...
500,000 young Danish girls have had the HPV vaccine since 2009 (photo: iStock)
Danish HPV centres flooded by ill girls
The five national HPV centres that opened on July 1 are already stretched t...
Crown Prince Frederik will lead the delegation (photo: iStock)
Crown Prince Frederik to lead trade delegation to South Africa
From November 2-4, Crown Prince Frederik will be heading a business delegat...