thyssenkrupp Proposes Job Cuts, Capacity Reduction
11/26/2024 - thyssenkrupp’s steel division is looking to shed 11,000 jobs over the next five years and reduce its steelmaking capacity as it attempts to reorient itself in changing European market.
In an announcement Monday, thyssenkrupp said the goal is to cut approximately 5,000 jobs by 2030 through adjustments in production and administration. An additional 6,000 jobs are to be contracted out or transferred to potential spinoffs.
Also, the company will reduce production capacities from 11.5 million metric tons annually to a future shipment target level of 8.7 million to 9 million metric tons. The company said it primarily hopes to achieve that through separation from Hüttenwerke Krupp Mannesmann.
thyssenkrupp blamed overcapacities and the resulting increase in cheap imports, especially from Asia.
“In order to position ourselves for the future, a comprehensive optimization and streamlining of our production network and processes is necessary,” said thyssenkrupp chief executive officer Dennis Grimm.
“We are aware that this path will demand a lot from many, especially because we will have to cut a large number of jobs in the next few years in order to become more competitive. That is why it is now all the more important that all those involved take joint responsibility to advance steel. The quality of our products and our technological expertise are a stable foundation for our path forward. Our customers can continue to rely on our high-quality flat steel products in the future."
thyssenkrupp said it remains committed to its green transformation, which includes construction of a direct reduction plant. The company said it is engaging in constructive discussions with stakeholders to ensure the viability of the project in the rapidly changing environment.
Also, the company will reduce production capacities from 11.5 million metric tons annually to a future shipment target level of 8.7 million to 9 million metric tons. The company said it primarily hopes to achieve that through separation from Hüttenwerke Krupp Mannesmann.
thyssenkrupp blamed overcapacities and the resulting increase in cheap imports, especially from Asia.
“In order to position ourselves for the future, a comprehensive optimization and streamlining of our production network and processes is necessary,” said thyssenkrupp chief executive officer Dennis Grimm.
“We are aware that this path will demand a lot from many, especially because we will have to cut a large number of jobs in the next few years in order to become more competitive. That is why it is now all the more important that all those involved take joint responsibility to advance steel. The quality of our products and our technological expertise are a stable foundation for our path forward. Our customers can continue to rely on our high-quality flat steel products in the future."
thyssenkrupp said it remains committed to its green transformation, which includes construction of a direct reduction plant. The company said it is engaging in constructive discussions with stakeholders to ensure the viability of the project in the rapidly changing environment.
