Troubled German turbine manufacturer Senvion is set to be broken up after failing to find a buyer for the full turbine business.
Redundancies are expected to occur during September and take effect at the end of the year, the company said in a statement on Wednesday.
“There are several continuation projects to be completed which means that jobs will be secured for a substantial part of the turbine business workforce for the next few months, with some going into 2020.”
Shares in the company were down 50% in afternoon trading following the announcement.
Senvion said it has received “several advanced offers for various substantial core parts of its business”.
The company is entering final stages of the merger and acquisition process and will present the “investor concepts” to a creditors’ assembly for a vote on 10 September.
Senvion has also put in place financial arrangements to secure ongoing business activities over the timeline to conclude on the offers, including wage and salary payments for all business units.
Senvion chief executive Yves Rannou said: “For the past months, we have been committed to finding the best possible outcome for the company in this difficult situation.
“We are now close to having a solution for significant core parts of the business.
“What is more is that we can keep the business running until the M&A process is concluded. This is possible thanks to the hard work and dedication of everyone at Senvion.”
He added: “I want to thank our employees for their continued trust and support.”
The company said it will continue negotiations with employees’ representatives regarding potential social plans and balance of interest schemes for the affected workforce as well as potentially a transfer company for safeguarding an orderly process.