Vestas is to lay off around 400 employees as part of a product optimisation strategy that aims to keep the company profitable in the face of a series of threats, including the COVID-19 pandemic.
The turbine manufacturer said the workers will go in functions that do not support 2020 deliveries, primarily affecting Danish operations, in particular in Aarhus and Lem.
Unnamed technology projects are being stopped at the two locations, the company said.
A temporary facility in Viborg, which was established to serve specific projects from MHI Vestas Offshore Wind, will also be closed.
A further “limited number” of jobs will go in other unnamed European locations while directors in the executive management team will take a 10% pay cut until the end of the year.
The cuts come in response to the “extraordinary situation” brought about by the COVID-19 pandemic, the company said.
Following the announcement, Vestas said its headcount is more than 25,500 people globally and around 4000 in Denmark.
The product optimisation plan will meanwhile ensure a “strong focus on execution and long-term competitiveness”, the company said.
Guidance for the year is not affected.
Chief executive 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.”
He added: “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.”