German wind turbine manufacturer Nordex has revealed a plan to cut up to 500 jobs across its operations in Europe by the end of this year.
The cuts will be carried out as part of a cost-cutting initiative, which aims to compensate for drops in demand and changing market conditions in European countries.
The layoff will mainly affect Nordex’s site in Germany, which currently employs 2,500 of its total 5,200 employees worldwide.
Nordex is also planning to reduce material costs and other personnel and operating expenses, saving a total of €45m by next year. Approximately €21m of this will be achieved in the cost of materials and other operating expenses, with €24m achieved in personnel costs.
Nordex CEO José Blanco said: “The global windpower market will expand again stronger in the medium term. At the same time, however, it faces fundamental system changes, heavy price pressure, and a shift in growth away from the established markets in favour of the emerging markets.
"Business in the European core market is currently flat-to-weaker and thus posing challenges for us.
“Despite our good position and the successful measures having already been implemented, we need to work on achieving effective savings in the short term.
“Capacity adjustments are painful but unavoidable. Only with competitive cost structures and efficient products we will be perceived by our customers as a trustworthy and attractive partner.”
After its merger with Acciona Windpower last year, Nordex currently offers a wide range of products worldwide.