Thyssenkrupp Steel Europe, Germany’s largest steelmaker, has announced plans to cut 5,000 jobs by 2030 as part of a major restructuring effort.
The company aims to improve productivity and achieve a competitive cost level.
This move comes amid increasing pressure from cheaper Asian competitors, high energy prices, and a weakening global economy.
Thyssenkrupp: Strategic Realignment and Challenges
Thyssenkrupp Steel Europe (TKSE) plans to reduce its workforce by 11,000 people, which accounts for roughly 40% of its current employees.
The company cited the need for urgent measures to enhance productivity and operational efficiency.
The restructuring plan includes reducing production capacity from 11.5 million metric tons to a future shipment target of 8.7 to 9 million tons.
TKSE also plans to sell its plant in Duisburg, Huettenwerke Krupp Mannesmann, if a buyer is not found.
Impact on Employees and Union Reactions
The job cuts will affect both production and administrative roles.
TKSE aims to create long-term prospects for as many employees as possible. However, the scale of the reductions has raised concerns among labor unions.
The IG Metall union represents a significant portion of TKSE’s workforce. They have vowed to oppose the job cuts, calling the plan a catastrophe for employees.
Thyssenkrupp recently wrote down the value of its steel division by another 1 billion euros ($1.1 billion), reflecting the sector’s worsening outlook.
The company’s steel division is now valued at 2.4 billion euros, less than half of its worth two years ago.
The restructuring announcement has sparked backlash from labor unions. It has also raised concerns about the impact on employees and the potential loss of talent.
Thyssenkrupp’s workforce reduction is a significant move aimed at streamlining operations and focusing on key growth areas.
Despite the challenges, the company remains committed to improving productivity and achieving a competitive cost level.
The restructuring plan is expected to help Thyssenkrupp Steel Europe navigate the current market conditions and secure its long-term prospects.
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