Vestas to cut 2,335 jobs

Vestas is to cut 2,335 jobs as part of a restructure and cost reduction programme.

In a statement, Vestas said it aimed to reduce fixed costs by €150 million, primarily through streamlining support and closing factories where there is less market demand.

Out of the 2,335, 1,300 jobs will be lost in Denmark. After the cuts, Vestas will employ 20,400 globally, and 5,300 in Denmark.

Vestas also fired off a warning to the US government and said it was prepared to cut 1,600 US jobs if the Production Tax Credit is not extended.

Last year, the company warned redundancies would be on the way. At the end of 2011 the company announced a profit warning and said the oncoming restructure would result in job cuts.

This is not the first time Vestas has closed factories due to lack of market demand. In November 2010, it went through a similar exercise cutting 3,000 staff (around 13% of the global workforce) in Scandanavia.

Other changes include the creation of a 'Global Solutions and Services' unit to help build the companies O&M business Additionally, six new postitions have been created at executive board level.

Vestas CEO Ditlev Engel said: "I am truly sorry that we have to say goodbye to so many skilled and loyal Vestas colleagues. The expected layoffs are one of many steps that we now take in order to bring down costs allowing continuous development of our products and services and optimising our already global presence in a highly competitive wind energy market."

When asked about his future at a press conference to announce the restructure, Engel said he had no plans to resign.

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