To ensure a strong focus on execution and long-term competitiveness, Vestas will optimise parts of its product portfolio, which includes stopping certain projects with immediate effect. Simultaneously, and due to the extraordinary situation from the pandemic, additional measures are needed to ensure the organisation executes as strongly as possible on its order backlog and customer commitments in 2020.
To this end, Vestas intends to reduce its workforce across functions in Denmark that do not directly support 2020 deliveries. As a consequence of these measures, Vestas intends to lay off approximately 400 employees, which will primarily affect locations 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. The layoffs are expected to affect most Vestas locations in Denmark with the majority in Aarhus and Lem, due to technology projects driven from those locations being stopped. Vestas’ temporary facility in Viborg, which was established to serve specific projects from MHI Vestas Offshore Wind, will be closed.
