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Vestas says "good bye" to 2.335 employees | Europe

Vestas says "good bye" to 2.335 employees

After multiple good news and finishing 2011 with a series of new contracts, now the disappointment. Vestas has the intention to cut 2.335 jobs. The investors punished the company after the announcement.

According to the information provided by the danish wind energy giant, the planned reorganization will allow the company to reduce its fixed costs by more than EUR 150m ? with full effect as from the end of 2012 ? primarily through streamlining of support functions and closing of factories to align capacity with market demand. A total of 2,335 employees are expected to be made redundant.

Executive Management is extended to six members to allow greater functional focus on all key parts of the value chain and to drive a stronger performance management.

A Global Solution and Services unit will contribute to improving the performance of both existing and upcoming wind power plants and accelerate the development of the services and solution business.

Manufacturing is consolidated to capture cost synergies and reduce capital required for future growth as well as to increase flexibility in case of a prolonged industry slowdown.

In addition to the planned layoffs of 2,335 employees in the coming months, Vestas prepares for a potential slowdown in the US in case the present Production Tax Credit (PTC) is not extended. This can result in lay off of an additional 1,600 employees at plants in the US. The potential savings in this respect will be in addition to the more than EUR 150m mentioned above.
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Posted by Gisela Bühl | 2012-01-12