Outokumpu moves forward with €100 million restructuring plan

Outokumpu is moving ahead with its previously announced restructuring program, targeting structural cost savings of €100 million by the end of 2027. The initiative was first outlined in the company’s second-quarter results on July 31, and planning has now progressed to the next stage.

The restructuring will primarily focus on Outokumpu’s European operations and global group functions. Measures will include reductions in fixed costs, organizational efficiency improvements, and production footprint optimization.

According to the company, approximately 650 full-time positions are expected to be affected across the group by the end of 2027. Of these, 94 reductions have already been agreed, while another 120 roles are expected to be phased out through natural attrition. New negotiations – to be conducted in accordance with local laws – are now being initiated and may affect up to 450 additional employees.

Outokumpu also announced it expects to book a €45 million restructuring provision in the fourth quarter of 2025, with most of the related cash outflow occurring in 2026.

“We continue to face persistent challenges in stainless steel demand in Europe, intensified by low-priced imports from Asia and ineffective safeguard measures,” said Kati ter Horst, CEO of Outokumpu. “Our current level of profitability is unsustainable, and we must act decisively. These cost-saving measures are essential – though regrettably they will impact our employees. We are committed to supporting those affected throughout this transition.”

Final decisions will be made following the conclusion of local consultation processes. The company has not announced any changes to its restructuring timeline or savings targets.

Source and Photo: Outokumpu