Thyssenkrupp, the German industrial engineering and steel production multinational conglomerate is gearing to do away with 5,000 roles at its steel division over a period of five years. By 2030, it also plans to outsource 6,000 positions in an attempt to gain more stability. In total, 11,000 employees will be affected by 2030. The steel division, which is presently 27,000-strong, has been battling escalating production costs and stiff competition from steelmakers in Asia for some time now.
In addition to job cuts, there are plans to reduce production capacity by over two tons, from 11.7 million to nine million tons. These job cuts will affect employees in the production and administration departments. Payroll would be further reduced when roles are outsourced to external service providers or some business activities are put up for sale.
The sale of the Group’s shares in the Krupp Mannesmann steelworks in Duisburg, Germany is also being considered. Additionally, the Kreuztal-Eichen processing centre will be shut down in an effort to tackle market dynamics by altering capacity and cutting costs. Twenty per cent stake has already been sold to EP Group owned by Daniel Kretinsky, a Czech billionaire who is expected to end up holding 50 per cent stake.
While the unions are unhappy about the job cuts, Thyssenkrupp maintains that it is doing everything possible in the interest of maximum people in the longer term. Unions are expected to resist the move.
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Thyssenkrupp, the German multinational conglomerate specializing in industrial engineering and steel production, is planning to eliminate 5,000 positions in its steel division over the next five years. By 2030, the company aims to outsource an additional 6,000 roles as part of its strategy to achieve greater stability. In total, this restructuring will impact 11,000 employees by 2030. The steel division, which currently employs 27,000 people, has been struggling with rising production costs and intense competition from Asian steelmakers.
In addition to the job cuts, Thyssenkrupp plans to reduce production capacity significantly, decreasing it from 11.7 million tons to 9 million tons. These layoffs will affect staff in both production and administrative roles.
The payroll will be further reduced by outsourcing certain positions to external service providers or by selling off some business activities.The company is also considering selling its shares in the Krupp Mannesmann steelworks located in Duisburg, Germany.
Furthermore, the Kreuztal-Eichen processing center will be shut down as part of efforts to adapt to market dynamics by adjusting capacity and cutting costs. A 20 percent stake in the project has already been sold to EP Group, owned by Czech billionaire Daniel Kretinsky, who is expected to eventually acquire a 50 percent stake.While labor unions are opposed to the job cuts, Thyssenkrupp argues that these measures are necessary for the long-term benefit of the majority of employees. The unions are likely to resist these changes.
