Following huge losses, of up to €1.6 billion ($ 1.9 billion), the German multinational, Thyssenkrupp, is considering laying off 5,000 more people from its 104,000-strong workforce. The industrial engineering and steel company was heavily affected by the slump in demand during the pandemic. The Company had announced its intention to lay off 6,000 employees in 2019 too, inviting agitation from many unions. Since then, it has already let go about 3,600 employees.
Clearly, at least 7,400 employees will be rendered jobless by 2023. The shares of the Company have already fallen by over seven per cent this year, and there seems to be no sign of recovery any time soon.
These layoffs are a part of its strategy to reduce debt and finance its restructuring plans. Last year, the Company sold its elevators business for over €17 billion, to try and stabilise its financial situation.
While employees’ unions are trying to acquire support from the government, Thyssenkrupp is on the lookout for partners to help revive its steel business. British company, Liberty Steel is one of the companies that has come forward to partner with Thyssenkrupp. Swedish company, SSAB as well as Tata Steel have also been in talks for a possible partnership. However,
There have also been discussions with Sweden’s SSAB and India’s Tata Steel. A merger with Tata Steel did not work out last year when ant-trust regulators of the European Union posed some hurdle. .