Norway's publication and packaging paper manufacturer Norske Skog plans to downsize its operational and support functions by up to 200 positions in order to reduce costs and improve competitiveness.

Following a thorough review of its cost base, Norske Skog has reportedly identified several efficiency measures, including plans to cut up to 200 positions between 2025 and 2027. The job reduction will happen gradually, mainly through retirements and by not replacing staff who leave, avoiding direct layoffs. The changes will not affect production capacity or customer deliveries, according to Norske Skog.

The company is expanding its packaging paper business as demand for publication paper continues to decline. However, the company operates in a market long affected by overcapacity, low margins, and challenging conditions, with rising energy and raw material costs putting additional pressure on profitability, Norske Skog explained. The company expects the cost savings to improve its cost position and support further growth in the packaging segment.

“The downsizing will significantly lower our costs and strengthen the company's competitiveness. [...] The cost savings will strengthen Norske Skog's cost position and enhance our profitability despite price pressure on several of our products,” said CEO Geir Drangsland.

Source: Euwid Pulp and Paper