Norwegian aluminium producer Norsk Hydro (NHY.OL: Quote) said on Thursday it would cut 250-300 jobs in administrative and support functions and aimed to save 700-800 million Norwegian crowns ($99.13-113.3 million).
About 40 percent of the savings from the 2008 cost level are expected to be achieved in external costs for services and consultants, and the rest by reducing the company's own manpower, Norsk Hydro said in a statement.
The company has been hit hard by the global economic downturn, which has knocked demand for basic materials, including aluminium, from customers in industries such as automaking and construction.
The majority of the costs savings are expected to have full effect from the first quarter of 2010, while some savings will take longer before coming into effect, Norsk Hydro said.
Further improvement measures are under evaluation in light of the current market situation, it said.
Norsk Hydro shares traded down 5.9 percent at 21.40 crowns by 1349 GMT, underperforming a 3.2 percent drop in the Oslo bourse benchmark index