The aim is to ensure a strong focus on execution and long-term competitiveness. Due to the extraordinary situation from the pandemic, the company has decided additional measures are needed to ensure it performs as strongly as possible on its order backlog and customer commitments in 2020. This will include a reduction in its workforce across functions in Denmark that do not directly support 2020 deliveries.
As a consequence of these measures, Vestas intends to lay off approximately 400 employees, which will primarily affect locations in Denmark. A limited number of layoffs is also expected in other locations in Europe. Additionally, Vestas’ registered directors in Executive Management will take a 10 percent pay-cut until end of 2020.
“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” said President and CEO of Vestas, Henrik Andersen. “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”.
The layoffs are expected to affect most Vestas locations in Denmark with the majority in Aarhus and Lem, due to technology projects driven from those locations being stopped. Vestas’ temporary facility in Viborg, which was established to serve specific projects from MHI Vestas Offshore Wind, will be closed. Following the announcement, Vestas employs more than 25,500 people globally and around 4,000 in Denmark.
The announcement does not affect the suspension of Vestas’ guidance for 2020.
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