Vestas Wind ADR (VWDRY)

[ergo sum]

Vestas Wind Systems? tomorrow plans to announce organizational changes that may cut thousands of jobs at the world's biggest wind turbine maker while preserving the position of Chief Executive Officer Ditlev Engel.

As many as 3,000 of Vestas's more than 23,250 employees may lose their posts, said Jacob Pedersen, an analyst at Sydbank.

Vestas, based in Aarhus, Denmark, said on Nov. 9 that it wants to become a "leaner" company by reducing annual fixed costs by 150 million euros ($192 million).

"They'll probably cut 2,000 to 3,000 jobs, with a very large proportion of that in Denmark," Pedersen said in a telephone interview from the Danish city of Aabenraa. "I don't think there is even a question of getting rid of Ditlev Engel because he is very influential and very good at lobbying politicians."

Engel, 47, is under pressure after twice slashing Vestas's sales forecasts since October and abandoning a 2015 target for 15 billion euros of sales and a profit margin of 15 percent before interest and taxes. Chinese manufacturers led by Xinjiang Goldwind Science & Technology Co. and Sinovel Wind Group Co. have grabbed market share from Vestas, squeezing its margins.

A "significant change of the whole organization" will be announced tomorrow, according to a statement from Vestas on Jan. 3. It originally intended to announce the measures on Feb. 8, then brought forward the plan because it was making quicker progress on preparing the changes.

Jobs in the U.S., where Vestas has spent more than $1 billion building four plants in Colorado, may be spared in the announcement because of the strength of demand before tax credits supporting wind power expire at the end of 2012, said Maurice Rosenthal, an analyst.







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