World's Biggest Wind Turbine Maker Vestas Announces 1,900 Layoffs
3-megawatt wind turbines. Photo: VestasThat's the Way the Wind is Blowing Now...A little over a week ago I wrote about the custom wind turbines that Vestas would be making for China. Well, this week the news aren't quite as good. We've known for a while that the recession was hitting the company hard, but now we have confirmation. Vestas will make a 9% cut in its work force, which is about 1,900 jobs, mostly in the UK and Denmark. Read on for more details.
In the UK, a turbine plant will close on the Isle of Wight. That's 450 jobs.
The Danish firm blamed the headcount reduction, which represents 9% of its workforce, on market oversupply.
It came as Vestas reported a net profit of 56m euros ($73m; £50m) for the first three months of 2009, up from 33m euros for the same period last year. [...]
Vestas said that supply of wind turbines exceeded demand in Northern Europe, despite the drive of governments including Germany and the UK to increase the amount of electricity generated by green energy alternatives.
Vestas is still the world's largest wind turbine maker, and its financial situation seems solid. Sales for the last quarter rose 59% to 1.11bn euros. We can only imagine how high that number would've been if things had kept going at the pre-recession rate...
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