200 Danish jobs could be lost in Vestas cuts
Wind power giant Vestas is set to make cuts that will see up to 400 job losses, including 200 in Denmark.
Of the 200 jobs that will be cut in Denmark, 80 will be at the company’s factory in Hammel near Aarhus.
The redundancies in Denmark will primarily hit office staff, with the final figure dependent upon negotiations with employee unions, the company’s head of press communications Ander Riis confirmed.
Changes in the industry have resulted in growth becoming concentrated outside of Europe, resulting in the decision, according to Vestas.
The company is therefore making changes to its workforce relative to overheads and demand, it said.
“This is a result of growth being outside of the traditional wind markets – in other words, outside of Europe,” Riis said.
“Globally, we are seeing high demand for wind power and it is crucial that we have the right setup to meet that demand,” he said.
Jacob Pedersen, a market analyst with Sydbank who follows the industry closely, said the round of costcutting was a natural step for the wind power company.
“Vestas is part of a market that has undergone large changes in recent years. The sales price of wind turbines has fallen significantly and Europe is no longer Vestas’ bastion,” Pedersen said.
The company has between four and five thousand employees in Denmark and 24,300 in 79 different countries globally.
After Denmark, most of the job losses will be in Germany and other parts of north and central Europe.
Vestas expects to cut costs by 225 million kroner annually from 2019.
Eighteen months ago, the company announced 400 new jobs in Denmark at two extended factories, but announced later in 2017 a downward adjustment in its annual outlook amid a fall in share prices.
READ ALSO: Danish wind turbine giant blown off course by cloudy outlook
Comments
See Also
Of the 200 jobs that will be cut in Denmark, 80 will be at the company’s factory in Hammel near Aarhus.
The redundancies in Denmark will primarily hit office staff, with the final figure dependent upon negotiations with employee unions, the company’s head of press communications Ander Riis confirmed.
Changes in the industry have resulted in growth becoming concentrated outside of Europe, resulting in the decision, according to Vestas.
The company is therefore making changes to its workforce relative to overheads and demand, it said.
“This is a result of growth being outside of the traditional wind markets – in other words, outside of Europe,” Riis said.
“Globally, we are seeing high demand for wind power and it is crucial that we have the right setup to meet that demand,” he said.
Jacob Pedersen, a market analyst with Sydbank who follows the industry closely, said the round of costcutting was a natural step for the wind power company.
“Vestas is part of a market that has undergone large changes in recent years. The sales price of wind turbines has fallen significantly and Europe is no longer Vestas’ bastion,” Pedersen said.
The company has between four and five thousand employees in Denmark and 24,300 in 79 different countries globally.
After Denmark, most of the job losses will be in Germany and other parts of north and central Europe.
Vestas expects to cut costs by 225 million kroner annually from 2019.
Eighteen months ago, the company announced 400 new jobs in Denmark at two extended factories, but announced later in 2017 a downward adjustment in its annual outlook amid a fall in share prices.
READ ALSO: Danish wind turbine giant blown off course by cloudy outlook
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.