The layoffs at Thyssenkrupp, especially at the steel subsidiary Thyssenkrupp Steel Europe (TKSE), are at the center of a comprehensive restructuring process that significantly affects corporate structures and investor interests.
Background and Reasons for the Layoffs
The planned layoffs are part of a radical overhaul aimed at adapting to changing market conditions and reducing costs. The closure of blast furnaces and processing facilities is planned by 2029, which will cost approximately 1,600 jobs. Overall, Thyssenkrupp plans to reduce the workforce from the current 26,300 to under 16,000 to address financial challenges.
Measures and Impacts
Thyssenkrupp plans to cut around 5,300 jobs by 2028. In addition to the 1,600 jobs in production, an additional 3,700 positions will be lost due to the job cuts. At the same time, the layoffs are intended to be socially acceptable, supported by an interest reconciliation and social plan until September. Employees can expect average wage cuts of eight percent. Weekly working hours will be reduced, and holiday pay will be eliminated.
Reactions and Negotiations
The union IG Metall has reached an agreement with Thyssenkrupp on the key points of a restructuring collective agreement that foresees socially acceptable layoffs. Despite initial assumptions of up to 20,000 job cuts, this course is considered necessary to advance the company’s restructuring.
Outlook
The layoffs are part of a comprehensive transformation process aimed at stabilizing and improving Thyssenkrupp’s competitiveness. The main focus is to keep the impact on employees to a minimum.