Statkraft, the Norwegian state-owned renewable energy company, has just released an extraordinarily bold plan to cut through its bureaucracy. This new initiative strives for a 10-fold reduction in cost. The company plans to reduce payroll and other operating costs by Nkr2.9 billion (about $291 million) per year by 2027. This new effort actually represents a 15% cut from what had previously been projected in their financial plan for 2025.
The announcement comes as Statkraft sets complexity reduction goals to enhance efficiency and adapt to a rapidly changing energy market. Then in May 2025, the company took a bold move to divest its Colombian renewable energy portfolio, Enerfín Colombia. They then sold it to Ecopetrol, Colombia’s national oil company.
Strategic Focus on Core Competencies
Under the leadership of President and CEO Birgitte Ringstad Vartdal, Statkraft is charting a new course. From there, the company is intensely focusing on its core competitive advantages. The company plans to prioritize investments in near-term profitable opportunities while continuing to contribute significantly to energy security and the energy transition.
Statkraft is required to demonstrate targeted cost efficiency measures to achieve its objectives. This includes identifying and taking advantage of potential redundancies through its mandated annual business planning process in the second half of 2025. This decision further highlights the company’s strong commitment to focus on consumer demands, market shifts and geopolitical uncertainty.
“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 has a new strategy under development. In line with this plan, it will no longer develop new hydrogen projects and offshore wind, unless they are already under development. One big offshore undertaking already on the boards is the North Irish Sea Array (NISA), and it will go forward as scheduled.
Ceasing New Project Developments
Now Statkraft is turning its attention from constructing new to operating sites. They’re focusing on improving the efficiency of current services and investing in places where they see the most promise for future success and profitability. For its part, the company is continuing to seek through present and future divestment processes. This is mainly due to its strong district heating and biofuels segment in the Nordics, as well as business in Croatia, Netherlands, and India.
Vartdal acknowledged the impact of these changes on Statkraft’s workforce, stating that adapting to the changing market and increased geopolitical uncertainty inevitably affects its most important asset: its people. She promised to minimize confusion and toxic fallout for workers during the restructuring process.
Impact on Employees and Future Outlook
Vartdal acknowledged the impact of these changes on Statkraft’s workforce, stating that adapting to the changing market and increased geopolitical uncertainty inevitably affects its most important asset: its people. She pledged to limit uncertainty and mitigate negative effects on employees as part of the restructuring process.
“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.” – Birgitte Ringstad Vartdal