Bloomberg News

Vestas Cuts 2,335 Jobs Worldwide, More at Risk This Year in U.S.

January 19, 2012

Jan. 12 (Bloomberg) -- Vestas Wind Systems A/S, the world’s biggest wind turbine maker, said it’s cutting 2,335 jobs worldwide and a further 1,600 posts are at risk in the U.S. this year as a tax credit expires.

A total of 1,300 of the posts to be lost are in Aarhus, Denmark-based Vestas’s home country, the company said in an e- mailed statement. The reduction is aimed at slashing more than 150 million euros ($191 million) from annual fixed costs by the end of the year.

Chief Executive Officer Ditlev Engel is under pressure after the company lowered its 2011 sales forecast twice in three months, most recently on Jan. 3. The company faces increased competition from Chinese manufacturers led by Xinjiang Goldwind Science & Technology Co. and Sinovel Wind Group Co., and has suffered from delays in ramping up production at a new generator factory in Germany.

“The expected layoffs are one of many steps that we now take in order to bring down costs,” Engel said in today’s statement. “In several of our markets, we experience that the economic crisis delays and complicates the necessary transformation towards a more sustainable supply of energy.”

In the U.S., a further 1,600 jobs may be cut later this year if lawmakers don’t extend the so-called production tax credit, Vestas said. The credit gives an incentive of 2.2 cents a kilowatt-hour of wind power.

--Editors:

To contact the reporters on this story: Alex Morales in London at amorales2@bloomberg.net;

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net


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