Thyssenkrupp Steel Europe (TKSE), Germany’s largest steel manufacturer, has announced plans to cut 5,000 jobs by 2030. An additional 6,000 positions will be lost through outsourcing and the sale of business units. This move will shrink the company’s workforce by 40%, reducing it from 27,000 employees.
Financial Struggles Force Drastic Measures
Thyssenkrupp’s decision reflects deeper problems in the steel industry. The company faces tough competition from low-cost steel imports from Asia, rising energy costs, and a slowing global economy. These challenges have led to losses in four of the past five fiscal years.
A company spokesperson stressed the urgency of the cuts. “Immediate action is necessary to boost efficiency and productivity,” the statement read. The company also plans to lower annual steel production from 11.5 million tons to between 8.7 and 9 million tons. This adjustment aims to match market conditions and stabilize operations.
Factory Closures and Asset Sales
As part of the restructuring, Thyssenkrupp will close key sites, including the Kreuztal-Eichen plant. The company is also looking for a buyer for its Hüttenwerke Krupp Mannesmann (HKM) facility in Duisburg. This facility has played a significant role in the company’s history.
If a buyer is not found, Thyssenkrupp may consider shutting down HKM. These actions follow a €1 billion write-down of the steel division in November. This decision highlighted worsening market conditions and the company’s need to act swiftly.
Union Outrage and Planned Protests
Labor unions, led by IG Metall, have strongly condemned the job cuts. Knut Giesler, IG Metall’s regional leader in North Rhine-Westphalia, criticized the plan as a severe hit to workers. “We won’t stand by while over 11,000 jobs disappear and key sites close,” he said.
The union demands alternative solutions and has threatened mass protests if Thyssenkrupp proceeds. Employees have also voiced frustration, raising the risk of industrial action as the restructuring unfolds.
A Crucial Moment for German Steel
Thyssenkrupp’s restructuring could change the future of Germany’s steel industry. The sector faces intense competition and increasing costs linked to greener energy policies. The company hopes these cuts will secure its survival. However, the success of its plan may determine the fate of many workers and the industry as a whole.
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