Norsk Hydro: Hydro cuts costs and carries out strategic workforce adjustment

Core Viewpoint - Hydro is initiating a process to cut annual costs by NOK 1 billion, which includes reducing its workforce by 750 positions to strengthen long-term resilience and adapt to changing business requirements [1][2]. Cost Reduction Measures - The company plans to reduce its capital expenditure estimate for 2025 from NOK 15 billion to NOK 13.5 billion as part of its improvement program [2]. - The cost-cutting measures will include reducing travel and consultancy costs, alongside workforce adjustments [1][2]. Workforce Adjustments - Hydro will reduce approximately 750 white-collar positions, with 600 full-time equivalents (FTEs) expected to be cut by the end of 2025 and an additional 150 to be identified through efficiency initiatives from 2026 onwards [3][5]. - The workforce adjustments will primarily affect white-collar roles, including staff and support functions, engineering, commercial, supply chain, and IT, while blue-collar positions will remain unaffected [5]. Commitment to Transparency - The company is committed to conducting the transition with transparency and care, ensuring collaboration with employee representatives throughout the process [4][6]. - Hydro's approach is guided by its values of care, courage, and collaboration [4]. Long-term Value Delivery - By implementing these measures, Hydro aims to enhance its ability to navigate uncertainty and continue delivering long-term value to customers, employees, and stakeholders [6].