EMCC European Monitoring Centre on Change

Vestas

Company/Organisation:
Vestas

Geographic Location

Country: World
Location of affected unit(s): Europe, the Middle East, Africa, Asia Pacific and the Americas

Company

Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28.11 - Manufacture of engines and turbines, except aircraft, vehicle and cycle engines
Number Employed: 21100

Employment Effects

Announcement Date: 07-11-2012
Planned Job Reductions min: 4400
Planned Job Reductions max: 4400
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-10-2012
Foreseen End Date: 31-12-2013

Additional Information

Danish wind turbine producer Vestas announced plans to cut up to 4,400 jobs across the world, most of which in Europe, Middle East and Africa.

These new cuts come on top of cuts announced earlier this year: in January 2012, the company announced a reduction of 2,335 jobs (see here). The new cuts were announced in August 2012 (1,400 job cuts) and November (3,000 job cuts). Most jobs will be lost in Europe, the Middle East and Africa (55%), but branches in the Asia Pacific (25%) and the Americas (20%) will also be affected by the cuts.

The company stresses that some reductions will happen through divestments, meaning that employees might maintain their jobs under a different employer.

Is is reported that these redundancies are the response to reduced public subsidies for wind power and fierce competition in the market.