We have a credibility problem says Vestas boss as 2335 jobs axed

Danish wind power company Vestas is to axe 2335 jobs as part a radical reorganisation to streamline the firm and cut costs.

The job losses will be across the company’s operations worldwide, but 1300 will be in Denmark, Vestas said yesterday.

And it warned that a further 1600 staff in the US could go if current wind power tax credits which expire later this year are not renewed.

Vestas president Ditlev Engel said: “I am truly sorry that we have to say goodbye to so many skilled and loyal colleagues. The layoffs are one of many steps that we now take in order to bring down costs.”

Vestas wants to cut fixed costs by more than EUR150m after costs over-runs last year wiped out its profits. It is also facing fierce competition from other players in the sector, not least from companies in China.

Engel said he could understand if “people outside of Vestas consider us to be in state of crisis”. He added the company had a “credibility problem” that was “not undeserved”.

“We have to work our way out of this situation and the only way we can do that is by proving that we, with our global presence, high customer satisfaction and the industry’s best performing wind power systems, will come out stronger after the elimination race which is currently taking place within the renewable energy sector.”

 

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