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Nordex resorts to cost-cutting, plans 500 job cuts

CTBR Staff Writer Published 06 September 2017

German wind turbine-maker Nordex stated that it plans to implement job cuts by this year end, as part to efforts to achieve cost savings of up to €45m.

Nordex plans to cut between 400 and 500 jobs in Europe by the end of this year. The company noted that this is in response to fall in demand and change in market conditions in its primary market Germany as well as across other European markets.

With the move, the company also plans reduce cost of materials and other operating expenses. It intends to save about €21m on cost of materials and €24m on cost of human resources.

Nordex claims that the job cuts are aimed at reducing unnecessary redundancies to the extent that they are socially acceptable and will be discussed with employees openly and sensitively. These Job cuts are expected to affect its offices in Germany and other European offices.

Presently, the company has a total workforce of 5200, out of which 48% (2500) are located in Germany.  

Nordex CEO José Luis Blanco said: “The global wind power market will expand again stronger in the medium term. At the same time, however, it faces fundamental system changes, heavy price pressure and a shift in growth away from the established markets in favour of the emerging markets. Business in the European core market is currently flat to weaker and thus posing challenges for us.

“Despite our good position and the successful measures having already been implemented, we need to work on achieving effective savings in the short term. Accordingly, capacity adjustments are painful but unavoidable. Only with competitive cost structures and efficient products we will be perceived by our customers as a trustworthy and attractive partner.”

Nordex noted that after merging with Acciona Windpower last year, the company now has a broad range of products to offer at competitive scales.