Denmark-based Vestas announced today that it expects to lay off 2,335 employees by stopping manufacturing at a factory, merging units and centralizing administrative functions.
While the announced layoffs are primarily taking place in Europe and specifically Denmark, the firm said it is preparing for a potential slowdown in the United States in case the Production Tax Credit is not extended before it expires at the end of this year.
Vestas said the move will reduce its fixed costs by 150 million Euros. Overall, ff the 2,335 employees being dismissed, 182 are in the United States, 1,719 in Europe, and 404 in China and the rest of the world.
This could result in layoffs of an additional 1,600 employees at factories in the United States, said Vestas. TIf that scenario plays out, it would obviously impact Colorado-based plants and their workers. The company has invested more than $1 billion constructing four manufacturing facilities along the Front Range.
Vestas said the decision whether to layoff employees in the U.S. will be made sometime this year.