Background and Strategy
Thyssenkrupp plans to restructure into a financial holding starting in 2025 to increase flexibility and facilitate the sale of corporate divisions. This strategic realignment is necessary to make the company more competitive and to enhance efficiency. A key aspect of this restructuring is the reduction of operational substance through the sale of business areas such as the steel division and Thyssenkrupp Marine Systems shipyard.
Impact on Corporate Structure
The transformation into a financial holding will bring significant changes to the corporate structure:
- Reduction of Headquarters: The number of employees at the headquarters is to be reduced from 500 to 100.
- Sale of Business Areas: The steel division and the marine shipyard are the focus of the sales considerations.
- IPO of Material Trading: The material trading segment is also to be removed from the portfolio to unlock new investment opportunities.
Impact on Workforce
The planned measures will have significant effects on the workforce:
- Job Cuts: In addition to the reduction of the headquarters, another 1,000 jobs could be cut in administration.
- Changes in Business Areas: The sale of business areas could lead to further changes for the employees.
Impact on Investors
The transformation of Thyssenkrupp into a financial holding and the associated changes will also affect investors:
- Stock Volatility: The restructuring will lead to high stock volatility, which is typical for companies in transformation.
- Business Model and Revenue: Revenue has decreased, and the operating margin has significantly reduced. Extraordinary effects, such as the sale of business units, have, however, positive effects on the results.
- Investment Decisions: Investors need to consider the company’s long-term strategy and the impact of the restructuring on the business model.
Overall, the transformation of Thyssenkrupp into a financial holding will bring profound changes that will affect both the corporate structure and the investors.