Outokumpu Oyj initiates extensive restructuring program
Finland‑based stainless‑steel producer Outokumpu Oyj announced on 31 July 2025 that it would launch an extensive restructuring programme aimed at achieving annual structural cost savings of €100 million by the end of 2027. The plan is expected to reduce the company’s operating costs by approximately €100 million, thereby strengthening its competitiveness in the weak European stainless‑steel market.
Key elements of the restructuring
| Item | Details |
|---|---|
| Targeted cost savings | €100 million per year by 2027 |
| Projected job cuts | Up to 650 positions, with an additional 450 positions potentially affected in the course of negotiations |
| Scope | Company‑wide, covering production, logistics, administration and other support functions |
| Timeline | Negotiations to commence immediately; final decisions expected in the coming weeks |
| Rationale | Market conditions indicate a prolonged period of declining stainless‑steel prices, necessitating a reduction in operating expenses to maintain profitability |
Market reaction
The Swedish investment firm Inderes reiterated its recommendation to “increase” the stock, setting a target price of €3.80, in light of the announced restructuring. The recommendation follows a recent statement that the programme is crucial for improving Outokumpu’s cost competitiveness.
Impact on employees
Outokumpu has communicated that up to 650 positions could be eliminated as part of the restructuring. In addition, negotiations have been opened regarding potential cuts that could affect up to 450 employees across various countries. The total workforce of the company stands at 8,700 employees.
Financial context
- Closing price (29 May 2025): €3.452
- 52‑week high (17 Mar 2025): €3.869
- 52‑week low (6 Apr 2025): €2.698
- Market capitalisation: €1.805 billion
The restructuring aligns with Outokumpu’s strategy to streamline operations and adapt to a challenging market environment while maintaining its position as a leading supplier of stainless‑steel products worldwide.
