Swiss Steel Group has announced significant capacity adjustments in response to weak demand in European manufacturing, reduced production levels, and a subdued growth outlook. The steelmaker revealed on Friday that approximately 800 jobs will be cut across its operations in Switzerland and other countries. This restructuring is part of a broader effort to ensure the long-term optimization and stability of the company's production facilities. 

“The cuts are painful but unfortunately unavoidable,” said Swiss Steel CEO Frank Koch in a statement. He emphasized that these measures are critical for safeguarding the future of the company’s production sites located in Switzerland, Germany, and France. 

The job reductions primarily target the company’s European production facilities and its sales organization. As a result, Swiss Steel's workforce is expected to decline to fewer than 7,000 employees by the first half of 2025. This restructuring aligns with the company’s strategy to adapt to challenging market conditions and position itself for sustainable growth in the future. 

In Switzerland, the restructuring will heavily impact the Emmenbrücke plant, where 130 of the current 750 jobs are slated for elimination. Both production and administrative roles will be affected. While Swiss Steel hopes to minimize the impact through natural attrition, the company has stated that this will not be sufficient, making it necessary to lay off approximately 80 employees. 

These decisions come as the European steel industry faces significant headwinds, including high energy costs, slowing industrial activity, and uncertainties in global trade. Swiss Steel Group aims to use this restructuring to enhance its operational efficiency and competitiveness in an increasingly difficult market environment. 

Despite the challenges, Swiss Steel is committed to maintaining the operational integrity of its production sites. The company has assured that these adjustments are designed not only to manage current pressures but also to strengthen its foundations for long-term success. This includes investing in the modernization of facilities and refining its production processes to remain competitive in a rapidly evolving industry. 

The announced layoffs mark a critical moment for Swiss Steel Group as it navigates through economic and industry-specific challenges. The company has pledged to support affected employees through the transition, offering assistance and exploring measures to mitigate the impact of job losses wherever possible. 

Swiss Steel Group’s restructuring efforts highlight the difficult balance between addressing immediate market conditions and securing the future viability of its operations. By reducing its workforce and streamlining its operations, the company aims to build resilience and maintain its position as a leading player in the steel industry.