Thyssenkrupp Steel and the planned job cuts
Thyssenkrupp Steel is planning a massive job cut of over 11,000 positions by 2030 in order to restructure the company and return to profitability. The workforce is expected to shrink from around 27,000 to about 16,000 employees.
Focus on social compatibility
It is significant for investors that this reduction in staff is to occur without layoffs due to operational reasons. Instead, a socially compatible solution is being sought, among other things through a so-called bridge to retirement, which allows employees born in 1966 and later to retire early with social cushioning.
Mutual agreements with IG Metall
Furthermore, the following measures were agreed upon with the union IG Metall:
- Cancellation of vacation pay
- Reduction of Christmas bonuses
- Reduction of weekly working hours from 34 hours to 32.5 hours
- Suspension of additional collective bargaining special payments between 2026 and 2029
- Closure of the plant in Bochum by no later than the end of September 2028
- Retention of the Kreuztal-Eichen site with the development of a new business model
Impact on the steel sector
This restructuring is a response to the ongoing crisis in the steel sector due to high energy prices, cheap imports from Asia, and economic weakness. For investors, this means short-term burdens due to cuts in staff and potentially long-term stabilization through cost reductions and efficiency improvements.
Therefore, the news is relevant for market stability and the valuation of Thyssenkrupp as a DAX company, as it signals significant changes in cost structure and operational business.