Nordex to cut up to 500 jobs

GERMANY: Manufacturer Nordex has announced a €45 million cost-cutting exercise including a round of job cuts from across its European business.

Nordex is targeting savings of up to €45 million
Nordex is targeting savings of up to €45 million

Between 400-500 jobs are due to be lost from operations across Europe – with a likely concentration in Germany – by the end of this year, the firm said. The move was in response to "the sharp change in market conditions".

The firm also plans to make savings in the cost of materials and operating expenses. Nordex said it want to make savings of approximately €45 million next year. This includes a €21 million saving on materials and operating expenses, and further €24 million cut from personnel costs.

Employee representatives have been informed of the decision and Nordex said it hopes "to achieve the necessary redundancies as socially acceptable as possible".

The company said staff would not be reduced in business segments where "Nordex wants to achieve future growth".

Group CEO Jose Luis Blanco, said: "Despite our good position and the successful measures having already been implemented, we need to work on achieving effective savings in the short term.

"Accordingly, capacity adjustments are painful but unavoidable. Only with competitive cost structures and efficient products we will be perceived by our customers as a trustworthy and attractive partner," Blanco added.

In June, Nordex announced an unspecified number of jobs would be cut from its Rostock nacelle factory in Mecklenburg-West Pomerania, Germany.

The cuts come after Nordex forecast lower revenues in 2017 due to the fall of business in core markets.

The downgrade in forecast for this year cost former CEO Lars Bondo Krogsgaard his job at the top of the company. He was replaced by Blanco in March.

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