Vestas is under serious presssure, and CEO Ditlev Engel now launches a big round of layoffs in the group. Factories will be closed down, and totally 3,000 jobs will be abolished, mainly in Denmark. Vestas struggles with a big and costly overcapacity, which now forces the management to take drastic measures.
The round of layoffs is expected to affect 3,000 jobs, Vestas wrote in its financial 3rd-quarter report.
»To ensure the most efficient production, Vestas has decided to initiate negotiations with the relevant parties in relation to closing down of a number of factories, primarily in Denmark, where costs are highest,« Vestas wrote.
I addition to this, a number of administrative functions will be adjusted at several locations in and outside Denmark, Vestas added.
The reason for the saving scheme is that Vestas is compelled to adjust its capacity in Europe to a market growth which will not live up to Vestas’ expectations.
Vestas expects that in the fourth quarter an amount of EUR 140-160 million will be expensed for write-downs of property, plant and equipment and costs in relation to lay-offs of employees.
Vestas will close down its production at five factories – four in Denmark and one in Sweden.