Statkraft Unveils Bold $291M Cost-Cutting Plan, Layoffs on the Horizon

Statkraft, a state-owned utility in Norway, plans to reduce yearly expenses by 15% by 2027 in order to adjust to the shifting market conditions through cost-cutting strategies that include technical refocusing and layoffs.

By 2027, the business plans to cut salaries and other operating costs by about NOK 2.9 billion (USD 290.5 million/EUR 253.2 million) a year, it announced on 19 June. It follows the utility's statement that it will no longer pursue new green hydrogen projects and that it has adopted a "sharpened strategy" to direct cash towards its core operations.

According to CEO Birgitte Ringstad Vartdal, Statkraft must adjust to the shifting market conditions and heightened geopolitical unpredictability.

Specific Measures to be Revealed in the 2^nd Half of 2025

The second part of the year will see the identification of the precise actions that the business will take.

As the energy transition slows down owing to rising global uncertainties, rising costs, and falling power prices, Statkraft plans to focus its technological efforts on its flexible hydropower fleet in the Nordics, as well as solar, wind, and battery projects in Europe and South America.

Because the offshore wind business in Europe is developing slowly, no new offshore wind projects will be undertaken. The ruling also holds true for Norway's next Utsira Nord allocation round.

According to Vartdal, the company can sustain its development and value creation by focusing on its core competitive advantages and giving priority to investments in short-term profitable possibilities.

She clarified that some portfolios will be sold off, while short-term profitable technologies like solar, wind, and batteries in fewer areas will be prioritised.

Future Investments of Statkraft

Statkraft will evaluate its investment position in solar, wind, and batteries in Poland as part of the refocusing, and it will stop developing in Portugal while continuing to operate in both nations.

The Norwegian company plans to invest between NOK 16 billion and NOK 20 billion in maintenance projects, onshore wind projects in Sweden and Norway, and significant hydropower capacity enhancements in Norway in the upcoming years.

Although at a slower growth pace than initially anticipated, it would endeavour to extend its activities in solar, wind, storage, and grid services across Europe and South America, the company stated.

In addition to the previously announced and ongoing divestment proceedings, the aforementioned steps will affect the development business in Croatia and the Netherlands, the district heating and biofuels activities in the Nordics, and the business activities in India.

The Colombian national oil firm, Ecopetrol, agreed to purchase Statkraft's Colombian renewable energy portfolio, Enerfín Colombia, in May 2025.