Layoffs: German Steelmaker Thyssenkrupp Steel To Slash 40 Per Cent Of Workforce

The firm is a division of Thyssenkrupp AG and has been facing pressure from cheaper Asian competitors, increasing power prices, and a slowdown in global economy

The steelmaker informed that it will reduce 5,000 jobs by 2030 and a further 6,000 jobs will be let go of via the sale of business activities or transfer to external service providers.

Source : Thyssenkrupp

Thyssenkrupp Steel Europe (TKSE) is planning to slash its workforce by roughly 40 per cent, the firm said on Monday. The steelmaker is looking to layoff nearly 11,000 workers as it announced a major restructuring move.

The firm is a division of Thyssenkrupp AG and is the largest steelmaker in Germany. It has been facing pressure from cheaper Asian competitors, increasing power prices, and a slowdown in global economy which has resulted in operating losses in four of the last five years, reported The Economic Times.

The steelmaker informed that it will reduce 5,000 jobs by 2030 and a further 6,000 jobs will be let go of via the sale of business activities or transfer to external service providers.

Issuing an official statement, the firm explained, “Urgent measures are required to improve Thyssenkrupp Steel's own productivity and operating efficiency and to achieve a competitive cost level.” The announcement is the latest major restructuring exercise from a German industrial giant.

The company further noted that this move will also result in a reduction in production capacity from 11.5 million metric tonne to a future target of 8.7 to 9 million tonne. The firm will shut down its processing site in Kreuztal-Eichen.

It also plans to sell its plant in Duisburg, Huettenwerke Krupp Mannesmann as part of the intended capacity reduction. However, if it fails to achieve a sale, the firm will conduct discussions with other shareholders about closure scenarios. 

Earlier in the month, Thyssenkrupp wrote down the value of its steel division by an additional €1 billion, attributing it to the worsening outlook of the sector.

Notably, several big names in the German economy are planning to shut down factories. Last week, workers and management at Volkswagen engaged in the third round of discussions regarding pay cuts and possible factory closures in the country.