As the leader in onshore wind and with a vision to become the global leader in sustainable energy solutions, Vestas currently plays a key role in large scale deployment of renewables across the globe. To address the climate crisis however, the build-out of renewable energy must accelerate, and Vestas therefore wants to extend its leadership to encompass offshore wind. As a first step in this journey, Vestas has acquired MHI Vestas Offshore Wind (MVOW) and following closing of the agreement, which took place on 14 December 2020, Vestas has begun the integration of Vestas and MVOW into one organisation that is based on one shared operating model and unified culture.
Offshore wind is expanding to new regions of the world and with onshore wind already present in all parts of the world, the integration of the two companies includes combining, expanding, and simplifying existing functions within Vestas to meet market demand and create synergies. Through this integration, we are building a stronger and more competitive Vestas across our onshore and offshore businesses, and our planning has shown synergies across several functions, which unfortunately entail redundancies. Consequently, Vestas intends to lay off approximately 220 colleagues in primarily Denmark and Great Britain, with the majority being in Denmark. No layoffs are expected of hourly paid employees.
Henrik Andersen, Group President and CEO of Vestas, said, “Since we announced the agreement to acquire MHI Vestas Offshore Wind, we have meticulously planned how we can build a united and strong Vestas organisation that can lead and scale up in both onshore and offshore wind. I want to thank everyone for their hard work and dedication during a difficult period where my colleagues have contributed to both the integration planning and execution of commercial commitments. We have now started implementing our integration plans, which unfortunately includes letting around 220 hardworking colleagues go. It is never easy to make such a decision or say goodbye to good colleagues but integrating and simplifying two companies inherently creates overlaps between functions and it’s therefore necessary if we want to create a competitive and scalable organisation”.
The organisational integration will continue throughout 2021 and include a consolidated and simplified organisational setup, which will be announced internally on February 1st. The new organisation will also adopt a strong focus on creating a unified culture rallied around accelerating the energy transition and Vestas’ values of Passion, Accountability, Simplicity and Collaboration.
Vestas will now go into a consultation process with relevant employee representatives and aims to have clarity for most employees by end of January. Due to certain legal processes and requirements, the process may, however, take slightly longer outside Denmark. Following today’s announcement Vestas employs more than 29,000 globally and around 6,000 in Denmark across onshore and offshore activities.
Vestas is the energy industry’s global partner on sustainable energy solutions. We design, manufacture, install, and service onshore and offshore wind turbines across the globe, and with more than 125 GW of wind turbines in 82 countries, we have installed more wind power than anyone else. Through our industry-leading smart data capabilities and unparalleled more than 112 GW of wind turbines under service, we use data to interpret, forecast, and exploit wind resources and deliver best-in-class wind power solutions. Together with our customers, Vestas’ more than 29,000 employees are bringing the world sustainable energy solutions to power a bright future.
