Vestas announced today that it is to lay off around 3,000 staff, citing insufficient growth in the European market for the job losses.
In its interim financial report for third-quarter 2010, the company said it had ‘resolved to retain substantial excess capacity in Europe in expectation of an increased demand in 2010 and 2011’.
The Danish wind turbine manufacturer has, however, revised its outlook for 2011 and says it will close factories, primarily in Denmark where costs are said to be highest. Administrative posts in and outside of Denmark will be cut too.
The company expects the cost of write-downs of property, plant and equipment, plus expenses in relation to job losses to fall between €140 and €160m (£125m and £142m).
For the third quarter, the company generated revenue of €1,722m against €1,814m for the same period in 2009.
Firm and unconditional orders stood at 6,567MW, which Vestas says is the highest level ever recorded.
At the end of the quarter, the order backlog amounted to 5,884MW with a value of €5.7bn.