Denmark’s wind energy giant Vestas has called in employees Thursday morning to announce a plan to save EUR 150 million by year’s end in what will see 2,335 layoffs worldwide, with 1,300 losing their jobs in Denmark.

“Vestas will reduce its costs by more than EUR 150 million to be fully effectuated from the end of 2012 – primarily through increased efficiency in support functions and factory closures with the goal of adjusting capacity in relation to market demand. A total of 2,335 layoffs can be expected,” Vestas says in a Stock Market report.

The layoffs and reconstruction plan come after Vestas has been forced to down-tone its forecasts three times in the past two years, latest two weeks ago.

“I am sorry to have to say goodbye to so many good and loyal Vestas employees. The layoffs are one of several measures we are taking to reduce costs,” CEO Ditlev Engel says in a comment on developments.

At the same time, Vestas has abandoned several of its ambitious growth targets.

The Stock Market report issued this morning also speaks of changes in the Vestas organisation, with an increase in the management board to six members, in order to ensure better result management.

Production facilities are to be reorganised and merged, in order to achieve ‘cost synergies and reduce capital requirements for future growth’ and in order to create increased flexibility in the case of a lengthy hiatus in the wind energy industry.

“We can see on several of our markets that the economic crisis is delaying the necessary restructuring towards a more sustainable energy supply and making it more difficult,” Engel says.

Vestas says that the company is also preparing for a potential reduction in the US market if the current US Production Tax Credit (PTC) subsidy ends at the end of 2012. If as expected the PTC credit is abolished, Vestas says it envisages further layoffs of 1,600 employees at US factories.

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