Vestas plans 3000 further jobs losses as cost-cutting deepens

Posted at November 8, 2012 » By : » Categories : News » Comments Off on Vestas plans 3000 further jobs losses as cost-cutting deepens

Troubled Danish wind turbine manufacturer Vestas has announced plans for a further 3000 job cuts before the end of 2013 as its cost-cutting programme deepens.

Despite a 49% increase in revenue compared with the third quarter last year and two profitable quarters in a row this year, Vestas says that cost reductions are still needed to weather current market uncertainty.

Earlier this year, the company announced plans to reduce its workforce to 19,000 but it now says that the total will be 18,000. A further 2000 jobs cuts will now also be made next year to take the total to just 16,000. At the beginning of the year, Vestas had some 22,700 employees on its books.

One small positive note may be that some of those job reductions will come through divestments of parts of Vestas businesses, so positions could be retained by new owners.

By the end of next year, Vestas says these changes will save an additional €150 million to take its total cost savings since the end of 2011 to €400 million.

“Vestas is progressing faster than expected in executing the plan we have earlier announced to lower the operating costs of the company,” said CEO Ditlev Engel in a statement.

But he warned that 2013 would be a tough year for the industry and Vestas has to “further intensify” its cost saving plan to enable the company to react to market challenges.

“However difficult it is to make further cost savings and also further reduce the workforce, it is simply necessary in order to create an even leaner and more agile Vestas to ensure the company’s continued profitability in a very uncertain and unstable wind turbine market,” he said.

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Related stories:
Vestas loses up to €18 million through unauthorised deals (3-Oct)
Vestas in talks with Mitsubishi Heavy Industries over ‘cooperation’ (4-Sept)
Vestas scraps plans for UK wind turbine plant in Kent (25-Jun)
Vestas to lay off 2335 employees to cut costs (3-Jan)

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