Danish company Vestas said on Oct. 26 that it would cut 3,000 jobs, mainly in Denmark, because of slow growth in Europe.
"In 2011, the European market growth will, however, not live up to Vestas' expectations, which is why Vestas is compelled to adjust its capacity in Europe," the company said in its third-quarter earnings report.
The company had previously decided to retain excess capacity in Europe because it had expected increased demand in 2010 and 2011.
It added it would close down a number of factories, "primarily in Denmark, where costs are highest."
Vestas also said it would adjust a number of administrative functions in and outside Denmark.
It said the lay-offs and the write-downs of property, plants and equipment would cost it from 140 to 160 million euros (US$195 to 223 million), which would be expensed as one-off costs in the fourth quarter.
Copyright Agence France-Presse, 2010
