Berlin – In a bold move to address ongoing financial challenges, Thyssenkrupp Steel Europe (TKSE), Germany’s largest steel manufacturer, has unveiled plans to cut 5,000 jobs by 2030. Additionally, another 6,000 positions will be eliminated through outsourcing and the sale of certain business units. The measures will reduce the workforce by 40 percent, from its current 27,000 employees.
Market Struggles Push Thyssenkrupp to Drastic Measures
Thyssenkrupp’s challenges reflect broader issues in the steel industry, which has been hit hard by global competition and rising costs. The company has struggled against low-cost imports from Asia, surging energy prices, and a cooling global economy. As a result, it has reported losses in four of the past five fiscal years.
In a statement, the company justified the cuts as a necessity to ensure its survival. “Urgent action is required to enhance productivity and operational efficiency,” it said. As part of its strategy, Thyssenkrupp also plans to reduce annual production capacity from 11.5 million tons to between 8.7 and 9 million tons to better align with anticipated market trends.
Facility Closures and Asset Divestments
The restructuring plan will see the closure of key facilities, including the Kreuztal-Eichen plant. Thyssenkrupp is also seeking a buyer for its Hüttenwerke Krupp Mannesmann (HKM) facility in Duisburg, a historically significant operation for the company.
Should the sale of HKM fail, Thyssenkrupp has indicated it may work with stakeholders to discuss closure scenarios. These steps follow a €1 billion write-down of the steel division in November, a move that underscored the deteriorating market conditions and the need for decisive action.
Union Condemns Plans, Promises Resistance
Labor unions, led by IG Metall, have strongly opposed Thyssenkrupp’s proposed cuts. Knut Giesler, regional leader for IG Metall in North Rhine-Westphalia, described the measures as a severe blow to workers and vowed strong resistance. “We will not stand by as over 11,000 jobs are cut and key sites are closed,” Giesler warned.
IG Metall is demanding socially responsible alternatives and has promised large-scale protests if the company proceeds with its plans. Employees have also voiced their dissatisfaction, setting the stage for potential conflicts during the restructuring process.
A Defining Test for the German Steel Industry
Thyssenkrupp’s sweeping changes signal a turning point for the German steel industry, which is grappling with global competition and the mounting costs of transitioning to greener energy systems. As Thyssenkrupp works to stabilize its operations, the success or failure of its restructuring plan could set a precedent for the future of the sector.
