14 May 2020
Posted in Coronavirus
Vestas transformation plan will help it remain relevant with its competitors
Vestas transformation plan involving the layoff of around 400 employees across different functions that do not directly support its 2020 deliveries, will help the company remain relevant with its competitors and quickly adjust to disruptions caused by the COVID-19 pandemic, says GlobalData, a leading data and analytics company.
Somik Das, Power Analyst at GlobalData, comments: “Vestas is experiencing disruptions in its manufacturing activities, supply chain and installations due to COVID-19. In order to address these challenges, the company should adjust by focusing on its deliveries for 2020.”
The company has fifteen production facilities across Europe, out of which six are in Denmark. It has a turbine research and development facility in Aarhus and a blade production site in Lem. Due to disruptions, the technology projects in these facilities are not part of the transformation plan.
Somik adds: “These are testing times, with a high amount of uncertainty created by the pandemic, and suspended guidance for 2020. Vestas is focusing on its deliveries for the current year and the layoffs are a result of the company’s urge to cut down on its operational costs amid the existing financial uncertainty.”