The company had earlier planned to reduce its annual fixed costs by €150m and has revised it to €250m considering lowered shipments forecast of 5GW in 2013.

Vestas CEO Ditlev Engel underlined the downsizing as an inevitable exercise as a precursor to challenging year in 2013.

"It is always unfortunate to have to say goodbye to good colleagues in Vestas, but we have said before that 2012 will be tough and 2013 will be even tougher for Vestas, and in order to reach our target of making 2013 profitable, it is unfortunately a necessity," said Engel.

Vestas global senior vice president of people & culture Roald Steen Jakobsen sought to draw positives out of the additional downsizing, saying that it proved that the company was in full control of the cost reduction plan.

Around 55% of the downsizing will happen in Europe, Middle East & Africa while Asia Pacific will contribute 25% and the Americas bringing in 20% reduction in employee strength.

At the end of 2012, the company will have 19,000 employees remaining on its rolls.