Hydro announces additional cost-cutting measures

Norsk Hydro ASA, an aluminum producer headquartered in Oslo, Norway, with operations in 42 countries, including the U.S., is implementing measures to cut annual costs and align its organizational structure with its strategic goals and changing business requirements.

When completed, these measures, including reducing the overall white-collar workforce and initiatives to cut travel costs and consultancy costs, are expected to provide an annual cost reduction of 1 billion Norwegian kroner, or $97.8 million.

This measure is in addition to the improvement program and reduction in capex of 13.5-15 billion Norwegian kroner, or $1.3-$1.47 billion, already underway for 2025, with Hydro noting that under the current political environment, investments will focus on flexibility, risk mitigation and responsiveness to changing economic and policy conditions.

"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," Hydro President and CEO Eivind Kallevik says.

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 those employees by approximately 750 positions.

The workforce adjustment process will begin immediately, affecting roles that include staff and support functions, engineering, commercial, supply chain and information technology across group functions, business areas and global business services. Blue-collar positions, including production, maintenance and press operators within the business areas, are not affected by this process, which will result in a reduction of 600 full-time employees by year-end, with an additional 150 to be identified through efficiency initiatives from 2026 onward, according to the company. 

Hydro says it remains firmly committed to conducting this transition with transparency and care, ensuring close collaboration with employee representatives throughout the process.

The additional cost-saving measures come despite an increase in net income in this year’s second quarter compared with one year earlier. Hydro’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose by more than 33 percent in the second quarter of 2025 compared with the same time frame last year, with its more profitable results having been tied to higher aluminum and energy prices and the realization of previously eliminated internal profits.

However, Hydro’s EBITDA in its recycled-content Extrusions business unit fell by 8.5 percent year over year, driven by lower sales margins and partly compensated by higher sales volumes and lower fixed costs.

In North America, Hydro says extrusions demand has decreased by an estimated 1 percent in the second quarter of 2025 compared with the same quarter last year but has increased 5 percent compared with this year’s first quarter. The company cites a similar pattern in Europe.