Thyssenkrupp in crisis: radical restructuring and mass layoffs are imminent!

Thyssenkrupp in crisis: radical restructuring and mass layoffs are imminent!

Thyssenkrupp is planning a far-reaching restructuring that could fundamentally change the future of the group. CEO Miguel Lopez is aiming for a transformation into a holding structure, which will involve massive job cuts and the sale of specific business areas. According to a report in the “Bild” newspaper, this could ultimately lead to the practical dissolution of the traditional company, which is more than 200 years old and most recently employed more than 98,000 people ( Focus ).

Insiders report that over 50 percent of the workforce, i.e. more than 49,000 employees, could be affected by layoffs. The planned conversion could cost up to 70 percent of current annual sales, underscoring the need for a radical new start.

Restructuring of the steel division

A central element of the restructuring is the steel division, which is responsible for over 12 billion euros in sales. This division, which employs 16,000 people, is under pressure due to overcapacity and competition from cheap imports from Asia. In response, Thyssenkrupp plans to reduce production capacity from 11.5 million tons to around 8.7 to 9 million tons ( daily news ). A key part of this capacity reduction is the separation from Hüttenwerke Krupp Mannesmann (HKM).

In the event that the sale of the HKM shares is not possible, those responsible are considering amicable closure scenarios. This radical step is accompanied by the closure of another location in Kreuztal-Eichen, causing 500 employees to lose their jobs. In total, Thyssenkrupp plans to cut around 11,000 jobs in the steel division by 2030, with 5,000 being eliminated through adjustments to the production network and 6,000 through possible spin-offs or sales.

Administration and automotive supplier division affected

In addition to the steel division, administrative costs are also a big issue. The company headquarters in Essen is to be reduced from 500 to around 100 employees, which is also part of the planned clear-cutting. The auto parts division will not be spared either, with parts of the business set to either be sold or closed, leaving only a “husk” of the division.

Given the prevailing market conditions, Thyssenkrupp is forced to take drastic measures to create long-term prospects for the remaining employees. Board spokesman Dennis Grimm emphasizes the company's responsibility in this difficult transformation process. Further discussions with supervisory bodies and employee representatives have already been announced and are intended to support the affected employees during this turbulent time.