Vestas to axe a further 2,400

DANISH wind turbine maker Vestas yesterday unveiled plans to axe nearly 2,400 staff, or a tenth of its workforce, after rising costs wiped out all of its profits for 2011.

The world’s biggest turbine maker is battling fierce competition, including from Chinese rivals, as well as the threat of subsidy cuts for renewable energy.

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Vestas warned a further 1,600 jobs could go in the United States if Congress does not renew a tax break due to expire this year.

Under-pressure chief executive Ditlev Engel will remain in his current post, but chief financial officer (CFO) Henrik Norremark will become chief operating officer. Barclays Capital analyst Rupesh Madlani said: “Replacing the CFO is a wise move. The market had been disappointed at the lack of financial details and two profit warnings in a quarter from the company.”