Statkraft to streamline operations, targeting $291m cost cuts and layoffs
The move comes amidst slower progress in energy transition due to heightened global uncertainty, rising costs and declining power prices.
The company now aims to build scale, bolster competitiveness and drive value creation by narrowing its focus on select technologies and markets.
Statkraft's revised approach prioritises cash flow over volume expansion while simplifying operations to cut costs.
The company has set complexity reduction goals, which include slashing payroll and other operating expenses by Nkr2.9bn ($291m) annually by 2027, a 15% decrease relative to predictions for 2025.
The specific cost efficiency measures, including redundancies, will be determined during the annual business planning process in the second half of 2025.
Statkraft president and CEO Birgitte Ringstad Vartdal stated: 'By concentrating on our core competitive advantages and prioritising investments in near-term profitable opportunities, we will be able to continue our growth and value creation, while contributing significantly to the energy security and energy transition.
'Statkraft needs to adapt to the changing market and increased geopolitical uncertainty. Unfortunately, this also impacts our most important asset: our people. We will do what we can to limit uncertainty and mitigate negative effects on employees.'
The company plans to make investments between Nkr16-20bn ($2bn) each year into projects such as large-scale hydropower upgrades in Norway and maintenance of its extensive operational assets.
In alignment with announcements made in May 2025, Statkraft will cease new hydrogen project developments.
The company will also cease new offshore wind initiatives except for ongoing commitments such as the North Irish Sea Array (NISA) project.
Assessments regarding investment positions within solar power sectors, wind farms and batteries in Poland are underway, while development activities in Portugal will be discontinued, although market activities will continue.
Although growth rates will be moderated compared with previous projections, solar power and wind power projects will advance in both Europe and South America.
These measures will be in addition to the previously announced and ongoing divestment processes, including the district heating and biofuels activities in the Nordics, the development business in Croatia and the Netherlands, and business activities in India.
In May 2025, Statkraft agreed to sell its Colombian renewable energy portfolio, Enerfín Colombia, to Ecopetrol, the national oil company of Colombia.
"Statkraft to streamline operations, targeting $291m cost cuts and layoffs" was originally created and published by Power Technology, a GlobalData owned brand.
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