Germany's Nordex said it would cut one in 10 jobs to compensate a drop in orders in its core market, Europe, where cuts in government subsidies for wind farms have curbed demand and put pressure on turbine makers. The move is aimed at restoring investor confidence following a drastic cut to Nordex's mid-term outlook earlier this year that caused its share price to collapse and led to the resignation of then Chief Executive Lars Bondo Krogsgaard.
"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 CEO Jose Luis Blanco said on Tuesday. Nordex, the world's sixth-biggest wind turbine maker, aims to save around 45 million euros ($54 million) by 2018 and trim its workforce by 400-500 jobs, as much as 10 percent of its workforce, the company said.
The cuts, already flagged last month following first-half results, will mostly hit sites in Nordex's home market and lead to a low double-digit million euro one-off charge in 2017. In the first six months of 2017, Nordex, which bought the wind activities of Spain's Acciona two years ago, installed 682 megawatts worth of turbines in Europe, 14 percent less than in the year-earlier period.
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