Vestas has announced the optimisation of its product portfolio, which includes stopping certain projects with immediate effect. 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.
President and CEO of Vestas, Henrik Andersen, says “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. 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 today’s announcement, Vestas employs more than 25,500 people globally and around 4,000 in Denmark.