Danish wind turbine manufacturer Vestas has announced that it will lay off 400 employees as part of its product optimisation strategy.
It is also in response to the extraordinary situation created by the COVID-19 coronavirus pandemic.
The company noted that the layoff will primarily affect locations in Denmark with a reduction in the number of job cuts in other locations across Europe.
In Denmark, the layoffs are expected to take place at two Vestas locations in Aarhus and Lem.
Vestas will be reducing the workforce across functions in Denmark, where it employs 4,000 people. The cuts will mainly affect those who are not directly involved in 2020 deliveries.
The company further added it will be closing its temporary facility in Viborg that was established to serve specific projects from the MHI Vestas Offshore Wind.
Vestas president and CEO Henrik Andersen said: “We’re in a period of high uncertainty and by making a strategic decision on our product portfolio and reduce complexity, we sustain our competitiveness in the future and ensure we can adjust quickly to COVID-19 challenges.
“It’s always difficult to say goodbye to good colleagues and the timing for these decisions is never good, but our responsibility is to strengthen Vestas for long-term success.
“By making Vestas and wind energy more competitive, we want to provide the solutions that make the energy transition an integral part of rebuilding societies and economies, and ultimately creating jobs across the value chain.”
Additionally, Vestas has announced a 10% pay-cut until the end of this year for its registered directors in executive management.
The company has also decided to stop certain projects with immediate effect.