ThyssenKrupp Steel Plans to Cut Workforce by Approximately 40%

Thyssenkrupp Steel Europe (TKSE) announced plans to lay off 5,000 employees by 2030 and an additional 6,000 employees through the sale of its commercial activities or transfer to external service providers. The layoffs represent approximately 40% of the company's current workforce of 27,000. The largest steel producer in Germany has faced operating losses in four of the last five years due to pressure from cheaper Asian competitors, high energy prices, and a cooling global economy. The company stated, "Urgent measures are needed for Thyssenkrupp Steel to increase its productivity and operational efficiency and to achieve a competitive cost level." TKSE indicated that the new strategy envisions a reduction in production capacity from 11.5 million tons to a shipment target of 8.7 to 9 million tons, describing this change as an "adjustment according to future market expectations." The company announced the closure of its processing plant in Kreuztal-Eichen. The planned capacity reduction also includes the sale of the Huettenwerke Krupp Mannesmann facility in Duisburg; however, if a sale cannot be executed, the company noted it would hold discussions with other stakeholders regarding closure scenarios. Earlier this month, Thyssenkrupp attributed a further reduction of 1 billion euros (1.06 billion dollars) in the valuation of its steel division to the deteriorating outlook for the industry.