Thyssenkrupp Announces Massive Job Cuts in Steel Division

Thyssenkrupp, Germany's largest steelmaker, has announced plans to slash 11,000 jobs in its steel division, representing a 40% reduction from the current workforce of 27,000. The move, which has sent shockwaves through the Rhine-Ruhr region, is part of a broader restructuring effort aimed at securing the company's future in the face of escalating global trade tensions and economic uncertainty. It has announced permanent closure of processing site in Kreuztal-Eichen.

Key Points of the Restructuring Plan:

•              Job Cuts:

o             5,000 jobs to be eliminated through layoffs and streamlining administrative functions.

o             6,000 jobs to be shed through outsourcing and potential sale of Hüttenwerke Krupp Mannesmann (HKM).

•              Wage Cuts: Remaining 16,000 employees to face a 10% wage reduction to align with "competitive levels."

"We take our responsibility very seriously and want to create long-term prospects for as many of our employees as possible," said CEO Dennis Grimm. "We will therefore adapt to the changed market conditions through targeted capacity adjustments and cost reductions. Comprehensive optimization and streamlining of our production network and processes is necessary to make us fit for the future. We are aware that this path will demand a great deal from many people, especially because we will have to cut a large number of jobs over the coming years in order to become more competitive. That is why it is now all the more important for everyone involved to take responsibility together in order to move Steel forward. The quality of our products and our technological expertise are a stable foundation for our future path. Our customers will continue to be able to rely on our high-quality flat steel products in the future."

Management Reshuffle:

Thyssenkrupp's Chief Human Resources Officer, Oliver Burkhard, announced his resignation, effective January 31, 2025. This move has sparked speculation about a potential power struggle within IG Metall, with several high-ranking officials vying for the position.

German Economics Minister Robert Habeck has expressed concern about the job cuts but has also emphasized the need to protect domestic industry, particularly in the context of rising geopolitical tensions. The steel industry, facing challenges from global competition and increased trade tariffs, is under immense pressure to adapt and survive.

Steelworkers in Duisburg and other affected regions have expressed anger and frustration over the job cuts. Unions and workers' representatives have called for a more equitable and socially responsible approach to restructuring. However, the future of Thyssenkrupp's steel division remains uncertain, and the impact of these cuts on the local economy and the broader German industrial landscape is significant.