Norsk Hydro: Hydro cuts costs and carries out strategic workforce adjustment
Norsk Hydro (NHYDY) has announced a significant cost-cutting initiative aimed at strengthening its long-term resilience. The company plans to reduce annual costs by NOK 1 billion through various measures, including a workforce reduction of 750 white-collar positions.
The workforce adjustment will be implemented in phases, with 600 positions to be reduced by the end of 2025 and an additional 150 positions to be identified through efficiency initiatives from 2026 onwards. The company has also reduced its capex estimate for 2025 from NOK 15 billion to NOK 13.5 billion.
The restructuring specifically targets white-collar roles in staff functions, engineering, commercial, supply chain, and IT departments, while blue-collar positions in production and maintenance remain unaffected.
Norsk Hydro (NHYDY) ha annunciato un'importante iniziativa di riduzione dei costi per rafforzare la sua resilienza a lungo termine. L'azienda intende ridurre i costi annui di NOK 1 miliardo tramite diverse misure, tra cui la riduzione di 750 posizioni da colletti bianchi.
L'adeguamento dell'organico sarà progressivo: 600 posizioni verranno eliminate entro la fine del 2025 e altre 150 posizioni saranno individuate mediante iniziative di efficienza a partire dal 2026. La società ha inoltre ridotto la stima del capex per il 2025 da NOK 15 miliardi a NOK 13,5 miliardi.
La ristrutturazione riguarda in particolare i ruoli da colletti bianchi nelle funzioni di staff, ingegneria, commerciale, supply chain e IT, mentre i posti da colletti blu nella produzione e nella manutenzione non sono interessati.
Norsk Hydro (NHYDY) ha anunciado una importante iniciativa de reducción de costes destinada a reforzar su resiliencia a largo plazo. La compañía planea recortar los costes anuales en NOK 1.000 millones mediante diversas medidas, incluida la eliminación de 750 puestos de cuello blanco.
El ajuste de plantilla se aplicará por fases: 600 puestos se suprimirán antes de finales de 2025 y otros 150 puestos se identificarán mediante iniciativas de eficiencia a partir de 2026. La empresa también ha rebajado su previsión de capex para 2025 de NOK 15.000 millones a NOK 13.500 millones.
La reestructuración se dirige específicamente a puestos de cuello blanco en funciones de apoyo, ingeniería, comercial, cadena de suministro e informática, mientras que los puestos de cuello azul en producción y mantenimiento no se verán afectados.
Norsk Hydro (NHYDY)는 장기적 회복력을 강화하기 위한 대규모 비용 절감 계획을 발표했습니다. 회사는 다양한 조치를 통해 연간 비용을 NOK 10억 절감할 예정이며, 그 일환으로 750명의 사무직을 감축합니다.
인력 조정은 단계적으로 진행되며, 600명은 2025년 말까지 줄이고 나머지 150명은 2026년 이후 효율화 조치로 결정될 예정입니다. 또한 회사는 2025년 자본지출(캡엑스) 추정치를 NOK 150억에서 NOK 135억으로 낮췄습니다.
이번 구조조정은 주로 지원 기능, 엔지니어링, 영업, 공급망 및 IT 부문의 사무직을 대상으로 하며, 생산 및 유지보수 분야의 현장직(블루칼라)은 영향받지 않습니다.
Norsk Hydro (NHYDY) a annoncé une importante initiative de réduction des coûts visant à renforcer sa résilience à long terme. Le groupe prévoit de réduire ses coûts annuels de NOK 1 milliard par diverses mesures, incluant la suppression de 750 postes de cols blancs.
Les ajustements d'effectifs se feront par étapes : 600 postes seront supprimés d'ici fin 2025 et 150 postes supplémentaires seront identifiés via des gains d'efficacité à partir de 2026. La société a également abaissé son estimation de capex pour 2025, de NOK 15 milliards à NOK 13,5 milliards.
La restructuration vise spécifiquement les postes de cols blancs dans les fonctions support, l'ingénierie, le commercial, la supply chain et l'informatique, tandis que les postes de cols bleus en production et maintenance ne sont pas concernés.
Norsk Hydro (NHYDY) hat eine weitreichende Kostensenkungsinitiative angekündigt, um seine langfristige Widerstandsfähigkeit zu stärken. Das Unternehmen plant, die jährlichen Kosten um NOK 1 Milliarde zu senken, unter anderem durch den Abbau von 750 Stellen im Angestelltenbereich.
Der Personalabbau erfolgt gestaffelt: 600 Stellen sollen bis Ende 2025 wegfallen, weitere 150 Stellen werden ab 2026 im Zuge von Effizienzmaßnahmen identifiziert. Zudem hat das Unternehmen seine Capex-Schätzung für 2025 von NOK 15 Milliarden auf NOK 13,5 Milliarden reduziert.
Die Umstrukturierung zielt insbesondere auf Angestelltenpositionen in den Bereichen Support, Engineering, Vertrieb, Supply Chain und IT ab, während Facharbeiterstellen in Produktion und Instandhaltung unberührt bleiben.
- Cost reduction target of NOK 1 billion annually through strategic restructuring
- Proactive approach to address market volatility and geopolitical risks
- Reduced capital expenditure forecast for 2025 by NOK 1.5 billion
- Production and maintenance positions preserved, maintaining operational capacity
- Significant workforce reduction of 750 white-collar positions
- Potential impact on organizational capabilities in support and technical functions
- Implementation of cost-cutting measures indicates challenging business environment
To strengthen its long-term resilience, Hydro has decided to initiate a process aiming to cut annual costs by NOK 1 billion, including reducing the overall workforce by 750 positions.
Hydro is implementing measures to cut annual costs and align its organizational structure in accordance with strategic goals and changing business requirements. When completed, these measures, including reducing the overall workforce and initiatives to reduce travel costs and consultancy costs, are expected to provide an annual cost reduction of NOK 1 billion.
This measure comes in addition to the already communicated improvement program and reduction in the capex estimate for 2025 from NOK 15 billion to NOK 13.5 billion.
"By taking this step now, rather than later, we strengthen Hydro’s resilience and position ourselves to compete and succeed in a world where geopolitical unpredictability accelerates volatility and creates new risks," says President and CEO Eivind Kallevik.
Following the temporary hiring freeze implemented in June and the project to evaluate the number of white collar positions across the company, Hydro has decided to reduce the number of white collar employees by approximately 750 positions.
This workforce adjustment process will begin immediately and result in a reduction of 600 FTEs by year end 2025, with an additional 150 to be identified through efficiency initiatives from 2026 onwards.
Hydro remains firmly committed to conducting this transition with transparency and care, ensuring close collaboration with employee representatives throughout the process. The company’s approach will be guided by its values of care, courage and collaboration.
The workforce adjustment affects white collar roles, like staff and support functions, engineering, commercial, supply chain, and IT across group functions, Business Areas, and Global Business Services. Blue collar positions, like production, maintenance and press operators within the Business Areas, are not affected by this process.
By implementing these measures, Hydro aims to further enhance its ability to navigate uncertainty and continue delivering long-term value to customers, employees, and stakeholders.
Investor contact:
Elitsa Blessi
+47 917 75 472
elitsa.blessi@hydro.com
Media contact:
Halvor Molland
+47 92979797
halvor.molland@hydro.com
This information is subject to the disclosure requirements pursuant to Section 5 -12 of the Norwegian Securities Trading Act and the Euronext Rule Book part II.
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