Vestas Wind Systems says it will lay off 2,335 people, or 10 per cent of its global workforce.
The world’s biggest maker of wind turbines also warned Thursday that an additional 1,600 jobs in the U.S. could be at risk if Congress doesn’t extend tax breaks for renewable energy.
The firm blamed the need for job cuts on tough competition and a market slowdown following the global recession in 2008-2009.
Vestas, based in Aarhus, Denmark, said it would lay off 1,300 employees in its home country; 450 in Spain, Italy, Germany and Sweden, 400 in China and 182 in the United States.
In 2010, Vestas was awarded about $51 million in federal tax credits in the U.S., where it has invested more than $1 billion in four facilities in Colorado. The U.S. operations are headquartered in Portland, Oregon.
The additional cuts might come if the U.S. doesn’t extend its Production Tax Credit for renewable energy, which expires at the end of 2012.
Vestas expanded rapidly until the economic downturn slowed investments in wind power. In addition, it has lost market share to Chinese competitors.
Danish Prime Minister Helle Thorning-Schmidt called it "very, very sad news" for the country, which seeks to profile itself as a green energy leader.
"This is one of the businesses that we thought would be the new way of doing green technology," she said. "Despite the setback that we have seen right now, this is and will be the right approach.”
Last year, Vestas laid off 3,000 workers after posting a 24 per cent drop in profits in the third quarter.
After the cuts, Vestas said it will have around 20,400 staff and 25 factories worldwide.
With files from The Associated Press
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