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.