Vestas Wind Systems A/S (CPH:VWS), the western Denmark-based energy company and world's largest maker of wind turbines, announced Wednesday that it is letting go of 1,400 workers -- a  7 percent cut of its entire workforce, The Associated Press reported Wednesday.

Citing stiff competition and a general market slowdown, Vestas Chief Executive Ditlev Engel explained that the job cuts were part of a larger effort "to reach target of making 2013 profitable. 2013, as it looks today, is probably going to be the toughest year that the wind industry has seen for a number of years," Engel told Reuters.

Vestas says the latest round of job cuts will help cut costs by more than €100 million ($125 million) to  €250 million ($310 million), according to Reuters 

The company already slashed 2,335 jobs internationally in January 2012, the AP stated.

The layoff announcement came as the company reported a second-quarter loss of €8 million ($10 million), a €55 million ($69 million) drop in profit from the same period last year.