Thyssenkrupp, the German industrial engineering and steel production multinational conglomerate is gearing to do away with 5,000 roles at its steel division over a period of five years. By 2030, it also plans to outsource 6,000 positions in an attempt to gain more stability. In total, 11,000 employees will be affected by 2030. The steel division, which is presently 27,000-strong, has been battling escalating production costs and stiff competition from steelmakers in Asia for some time now.
In addition to job cuts, there are plans to reduce production capacity by over two tons, from 11.7 million to nine million tons.
These job cuts will affect employees in the production and administration departments. Payroll would be further reduced when roles are outsourced to external service providers or some business activities are put up for sale.
The sale of the Group’s shares in the Krupp Mannesmann steelworks in Duisburg, Germany is also being considered. Additionally, the Kreuztal-Eichen processing centre will be shut down in an effort to tackle market dynamics by altering capacity and cutting costs. Twenty per cent stake has already been sold to EP Group owned by Daniel Kretinsky, a Czech billionaire who is expected to end up holding 50 per cent stake.
While the unions are unhappy about the job cuts, Thyssenkrupp maintains that it is doing everything possible in the interest of maximum people in the longer term. Unions are expected to resist the move.
