Vestas Wind Systems to cut 2,335 jobs with potential more this year in the US
12 Jan 2012
Vestas Wind Systems A/S, the world's biggest maker of wind turbine, today said that it will cut 2,335 jobs among other cost-cutting plans, but investors still feel that the wide-reaching changes may not guarantee the company's long-term future.
Aarhus, Denmark-based Vestas will cut 10 per cent of its 22, 700 strong global workforce, close one of its 26 factories, start preparing for a potential scale-down of US operations in 2012, and reshuffle senior management.
"I am truly sorry that we have to say goodbye to so many skilled and loyal Vestas colleagues,'' CEO Ditlev Engel said in a statement, but noted the changes were necessary ''in order to prepare for a market with low growth and increased competition.''
The new layoffs come after Vestas last year laid off 3,000 workers, and after the new cutbacks, Vestas will have around 20,400 staff worldwide.
The cost-cutting measures will reduce its fixed costs by more than €150 million ($190 million) a year by the end of 2012.
Shareholders of the company still feel that the wide ranging cost-cutting measures may not guarantee the company's long-term future since the company ill equipped to face competition from low cost manufactures from China.
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