Vestas announces reduction of workforce in Denmark

To ensure a strong focus on execution and long-term competitiveness, Vestas announced on 20 April 2020 it will optimise its product portfolio and, due the extraordinary situation from the COVID-19 pandemic, its intention to reduce its workforce across functions in Denmark that do not directly support 2020 deliveries.
 
As a consequence, Vestas plans to lay off approximately 400 employees, of which the most will be located 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.
 
According to Vestas’ news release, the layoffs are expected to impact most Vestas locations in Denmark, with the majority in Aarhus and Lem, due to technology projects driven from these locations now being halted. Furthermore, 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 around 4,000 people in Denmark.
 
Since the outbreak of COVID-19, Vestas has taken measures to ensure the safety of its employees and to mitigate the impact of the coronavirus pandemic on its operations. For example, In Spain,  to comply with the government decision to ban all non-essential work for two weeks, from 30 March to 9 April, Vestas suspended production at its generator production facility in Viveiro and kept its blade facility located in Daimiel at the minimum capacity level.
 
Although Vestas confirmed on 13 April that their generator production facility resumed full production and their blade factory nearly reached the full utilisation rate, it has caused disruptions to Vestas’ manufacturing, supply chain, and installations. Due to this uncertainty, especially in regard to the duration of the pandemic and the full extent of the consequences thereof globally, Vestas suspended its full-year guidance on 7 April and said the updated guidance will be disclosed as soon as the company is capable of giving new estimates for the full-year results.
 
According to GWEC Market Intelligence’s Global Supply Side Date report, 1 in 5 wind turbines were installed by Vestas in 2018 making the Danish company the number one wind turbine supplier in the world. Our preliminary supply side data indicates that Vestas continues to hold the title as the world’s largest turbine supplier in 2019 with more than 10 GW installed worldwide.