The job cuts at Thyssenkrupp, particularly at its steel subsidiary Thyssenkrupp Steel Europe (TKSE), are at the center of an extensive restructuring process that significantly influences the company structures and investor interests.
Background and Reasons for Job Cuts
The planned job cuts are part of a radical overhaul aimed at adapting to changed market conditions and reducing costs. The plan includes the closure of blast furnaces and processing facilities by 2029, which will result in approximately 1,600 job losses. Overall, Thyssenkrupp intends to reduce the number of employees from the current 26,300 to below 16,000 to counter financial challenges.
Measures and Impact
Thyssenkrupp plans to cut around 5,300 positions by 2028. In addition to the 1,600 jobs in production, another 3,700 positions will be eliminated. At the same time, the layoffs are to be carried out in a socially acceptable manner, supported by a reconciliation of interests and a social plan by September. Employees must expect average wage losses of eight percent. Weekly working hours will be reduced, and vacation pay will be eliminated.
Reactions and Negotiations
The IG Metall union has agreed with Thyssenkrupp on key points of a restructuring collective agreement that provides for socially acceptable job cuts. Despite initial assumptions of a cut of up to 20,000 positions, this course is seen as necessary to advance the company’s restructuring.
Outlook
The job cuts are part of a comprehensive transformation process aimed at stabilizing and improving Thyssenkrupp’s competitiveness. The focus remains on minimizing the impact on employees.