Vestas to reduce work force by 10%

Vestas Wind Systems A/S, the world’s biggest manufacturer of wind turbines in terms of revenue, plans to layoff 2,335 people worldwide and warned that an additional 1,600 jobs in the U.S. could be at risk if Congress does not extend the Production Tax Credit.

Denmark-based Vestas said the layoffs were part of efforts to reduce fixed costs by more than $191 million as it deals with competition and a market slowdown following the global recession in 2008-2009.

Vestas said it would lay off 1,300 employees in Denmark; 450 of those would come in Spain, Italy, Germany and Sweden, while 400 would go in China and 182 in the U.S. The company is preparing for further cuts if the PTC for renewable energy does not receive an extension. It is currently set to expire at the end of 2012.

Last year, Vestas laid off 3,000 workers after posting a 24 percent drop in profits in the third quarter.

After the cuts, Vestas said it will have around 20,400 staff and 25 factories worldwide.

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