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Wind power giant Vestas to cut 600 jobs in Denmark and Germany

Danish wind power company Vestas is set to let almost 600 of its employees go in Denmark and Germany.

Wind power giant Vestas to cut 600 jobs in Denmark and Germany
A Vestas wind turbine blade displayed at an industrial trade fair in Hanover. File photo: Christian Charisius/Reuters/Ritzau Scanpix

A total of 590 jobs are to be cut by the company, including 90 at its factory at Lem near Ringkøbing and 500 at the factory at Lauchhammer south of Berlin.

The company confirmed the redundancies in a press statement.

The jobs cuts are a result of production moving to other parts of Europe due to customer demand for different types of wind turbine, the company said.

READ ALSO: Turbulent politics: How wind energy became a divisive issue in Germany

Vestas director of operations Jean-Marc Lechêne said in a press statement that the wind power firm needed to adapt its costs to the demand for windmills.

“This is a very competitive industry and fast transitions in energy [towards renewable energy, ed.] mean that we must introduce new products and solutions where and when the market demands them,” Lechêne said.

A fall in prices and near collapse in the German market are among factors forcing Vestas to make the jobs cuts, according to Jacob Pedersen, a head analyst with Danish bank Sydbank who closely monitors the industry.

“Prices are significantly lower than they were just two years ago. That’s why there’s a need to be very careful about costs,” Pedersen said.

“When you can see that some of the products being made at factories are no longer in as high demand, while at the same time factories are located in markets that are smaller than before, you have to make cuts,” he added.

Vestas’ announcement comes after competitor Siemens Gamesa also announced it would be releasing 600 staff in Denmark, with people in Aalborg and Brande particularly affected.

Pedersen called the trend “natural”, with costs of production abroad lower than in Denmark.

“There’s no doubt that Denmark faces a challenge with production staff being more expensive than in many other countries, even though they are also very good,” he said.

“So I find it difficult to envisage new production jobs (in Denmark) being created in the future,” he said.

In its press statement, Vestas stressed that the Lem facility would remain in use as a centre for development of new windmill blades.

READ ALSO: What you need to know before signing up with Danish unions and unemployment insurance

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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