Vestas set to intensify redundancies
Turbine maker's cost-cutting set to save further $190m
Turbine manufacturer Vestas has announced that it is aiming to save an extra US $190 million before the close of next year, through its cost reduction programme. Savings are set to made through divestments, a recruitment freeze and additional redundancies.
“Vestas is progressing faster than expected in executing the plan we have earlier announced to lower the operating costs of the company. We expect 2013 to be a tough year for the wind industry and to adapt to future uncertain market development we have decided to further intensify our cost saving plan to make sure we are scalable and able to react fast to the challenges we expect in the market in the coming years,” said CEO Ditlev Engel.
Vestas now expects to cut around 18,000 staff from its workforce by the end of 2012 or early next year – a slight reduction on the company’s earlier announcement of 19,000.
“However difficult it is to make further cost savings and also further reduce the workforce, it is simply necessary in order to create an even leaner and more agile Vestas to ensure the company’s continued profitability in a very uncertain and unstable wind turbine market,” Engel said.