Around 5,000 jobs will be eliminated while 6,000 will be outsourced, a company press release announced.
The steel branch of the German conglomerate Thyssenkrupp announced on Monday a reduction of 11,000 jobs by 2030 and savings on wage costs, a further illustration of the difficulties faced by European steelmakers in the face of Chinese competition. Around 5,000 jobs in production and administration will be eliminated while 6,000 will be outsourced, or more than 11% of the total workforce, the leading German steelmaker announced in a press release. Thyssenkrupp Steel, which has been accumulating losses for several years, also wants to reduce labor costs by an average of 10% “in the coming years”. These measures are “necessary to improve the productivity and operational efficiency of Thyssenkrupp Steel, and to achieve a competitive cost level”specifies the press release. This project is a “catastrophe for employees and industry in North Rhine-Westphalia”birthplace of the group in western Germany, denounced the IG Metall union.
In April, the industrial conglomerate announced a restructuring of its subsidiary, its core business, weighed down by rising energy costs and low-cost Chinese competition, in the context of a complex and costly energy transition. According to the plan presented on Monday, steel production capacities will be reduced to a range between 8.7 and 9 million tonnes, compared to 11.5 million today. In addition, the Kreuztal-Eichen site (west of Germany), which employs 1,000 people according to the local press, will be closed. At the same time, the group still intends to gradually separate from Thyssenkrupp Steel, a process accelerated in May with the acquisition of 20% of the shares by Daniel Kretinsky, via his holding company EPCG. Discussions are underway on an additional 30% stake for EPCG, with the aim of creating an equally owned joint company. Earlier on Monday, the conglomerate committed to financing its steel arm for the next two years. As for its ecological transition plans, they remain “unchanged”specifies the subsidiary which wishes to start its production of green steel in 2027
