Norsk Hydro ASA Announces Major Cost-Cutting Measures
In a decisive move to bolster its financial resilience, Norsk Hydro ASA, a leading supplier of aluminum and aluminum products, has announced a comprehensive cost-cutting initiative. The company, headquartered in Oslo, Norway, and listed on the Frankfurt Stock Exchange, aims to reduce its annual costs by NOK 1 billion. This strategic adjustment includes a significant workforce reduction, impacting 750 positions, primarily among white-collar employees.
Strategic Workforce Adjustment
The cost-cutting measures are part of a broader strategy to align the company’s organizational structure with its strategic goals and evolving business requirements. Norsk Hydro plans to implement these changes in phases. By the end of 2025, 600 positions are expected to be reduced, with an additional 150 positions to be identified through efficiency initiatives starting in 2026. This phased approach underscores the company’s commitment to minimizing disruption while achieving its financial objectives.
Additional Cost-Reduction Initiatives
Beyond workforce adjustments, Norsk Hydro is also focusing on reducing travel expenses and consultancy costs. These initiatives are designed to complement the workforce reduction and contribute to the overall goal of cutting annual costs by NOK 1 billion. The company’s proactive approach to cost management is intended to strengthen its market position and enhance long-term resilience.
Capex Reduction
In line with its cost-cutting strategy, Norsk Hydro has revised its capital expenditure (capex) estimate for 2025. The company has reduced its capex from NOK 15 billion to NOK 13.5 billion, reflecting its commitment to optimizing resource allocation and focusing on strategic investment areas.
Market Reaction
As of August 12, 2025, Norsk Hydro’s share price stood at EUR 5.488, with a market capitalization of EUR 10.857 billion. The company’s price-to-earnings ratio is 13.5727, indicating investor confidence in its strategic direction. The recent announcements are expected to be closely watched by investors as they assess the potential impact on the company’s financial performance and market valuation.
Conclusion
Norsk Hydro’s strategic cost-cutting measures, including workforce adjustments and capex reduction, reflect its commitment to strengthening its financial position and ensuring long-term resilience. As the company navigates the challenges of the metals and mining industry, these initiatives are expected to play a crucial role in maintaining its competitive edge and supporting sustainable growth. For more information on Norsk Hydro’s product offerings and strategic initiatives, visit their website at www.hydro.com .