Outokumpu Oyj launches restructuring programme targeting €100 million annual cost savings
Outokumpu Oyj, a Finnish stainless‑steel producer listed on the NASDAQ OMX Helsinki, has announced the implementation of a restructuring programme aimed at achieving €100 million in annual cost savings by the end of 2027. The initiative, first disclosed in the second‑quarter report on 31 July 2025, will involve the elimination of up to 650 positions across the company’s global operations.
Scope of the restructuring
The programme is projected to affect approximately 450 to 650 employees, including staff in Sweden, Finland, Germany, and other European and Asian markets. The company has entered into change‑management negotiations with employee representatives in the coming weeks.
Financial impact
Outokumpu expects the cost‑saving target to strengthen its cost competitiveness amid a weak European stainless‑steel market. The programme will generate structured savings of €100 million per year by 2027, improving operating margins and supporting the company’s long‑term financial health.
Analyst commentary
- Danske Bank upgraded Outokumpu to “buy” (maintain) and set a target price of €5.20.
- Inderes reiterated its “increase” recommendation, citing the restructuring as crucial for cost competitiveness, and set a target price of €3.80.
Market context
The company’s share price, quoted at €3.452 on 29 May 2025, is trading below its 52‑week low of €2.698 (6 April 2025) and above its 52‑week high of €3.869 (17 March 2025). The restructuring is viewed as a strategic move to align operating costs with market conditions and to preserve shareholder value.
Corporate background
Outokumpu Oyj is headquartered in Helsinki and specializes in the production and sale of stainless‑steel products worldwide. Its product range includes cold‑rolled coils, precision strips, hot‑rolled coils, plates, and custom‑made press plates, among others. The company also produces ferrochrome and by‑products such as OKTO insulation and aggregates.
