Thyssenkrupp Steel Europe To Slash 11,000 Jobs
The reduction will see 5,000 positions eliminated by 2030, with an additional 6,000 impacted by outsourcing or divestments
Thyssenkrupp Steel Europe (TKSE) has unveiled plans to cut 11,000 jobs, representing 40 per cent of its workforce of 27,000, as the steelmaker grapples with mounting global pressures. The reduction will see 5,000 positions eliminated by 2030, with an additional 6,000 impacted by outsourcing or divestments.
Germany's largest steel producer faces stiff competition from low-cost imports from Asia, surging energy prices, and a weakening global economy. These challenges have resulted in operating losses for four out of the past five years. In a statement, the company acknowledged the dire situation, stating that “urgent measures are required to improve productivity and achieve a competitive cost level.”
In a bid to align production with future market expectations, TKSE plans to scale back output from 11.5 million tons to 8.7–9 million tons annually. This includes shutting down its Kreuztal-Eichen processing site and possibly selling its Duisburg plant, Huettenwerke Krupp Mannesmann. If a buyer for the plant cannot be secured, closure discussions with stakeholders may be initiated.
The company recently wrote down the value of its steel division by €1 billion, citing a deteriorating industry outlook. These steps underscore the significant challenges facing the steel sector, which has been battered by high costs and declining demand.
