Vestas to cease certain projects with immediate effect to focus on execution and long-term competitiveness
Danish wind turbine manufacturer Vestas has announced plans to lay off 400 employees in Europe, majorly in Denmark, as part of product optimisation strategy amid COVID-19 outbreak.
The company is also planning to stop certain projects with immediate effect, and focus on execution and long-term competitiveness.
Vestas noted that it seeks to take additional measures to execute order backlog and customer commitments in 2020.
The company is planning to make layoffs at most of its locations in Denmark with the majority in Aarhus and Lem, where technology projects are being closed.
The firm said in a statement: “To this end, Vestas intends to reduce its workforce across functions in Denmark that do not directly support 2020 deliveries.”
Vesta’s temporary facility in Viborg to be closed
The firm will also close its temporary facility in Viborg, which serves specific projects from MHI Vestas Offshore Wind.
Vestas has also announced that its registered directors in executive management will take a 10% pay-cut until end of 2020.
Vestas president and CEO Henrik Andersen said: “We’re in a period of high uncertainty and by making a strategic decision on our product portfolio and reduce complexity, we sustain our competitiveness in the future and ensure we can adjust quickly to COVID-19 challenges.
“It’s always difficult to say goodbye to good colleagues and the timing for these decisions is never good, but our responsibility is to strengthen Vestas for long-term success.
“By making Vestas and wind energy more competitive, we want to provide the solutions that make the energy transition an integral part of rebuilding societies and economies, and ultimately creating jobs across the value chain.”