Thyssenkrupp facing radical clear-cutting: 50% of jobs at risk!

Thyssenkrupp facing radical clear-cutting: 50% of jobs at risk!

Thyssenkrupp is facing a radical restructuring. According to a report in the “Bild” newspaper, the group plans to transform itself into a holding company and sell parts of the company. CEO Miguel López has announced that the steel division, which is now to be phased out of the steel trade more than 200 years after its founding, will be listed on the stock exchange. This division employs around 16,000 people and generates annual sales of more than 12 billion euros. However, interest in the less lucrative steel division is considered to be low, which puts the planned stock exchange listing in question. Just a few weeks ago, López described steel trading as the core business.

The automotive supplier division is also in the focus of restructuring. Closings or sales are being considered here, so that only a “shell” of the business may remain in place. Significant cuts are also imminent in administration. The corporate headquarters could be reduced from the current 500 to around 100 employees. In total, more than 50 percent of the current 98,000 employees could be laid off. These drastic changes could seriously jeopardize the existing corporate structure, with insiders already pointing out that Thyssenkrupp could ultimately be effectively dissolved.

Reactions and political concerns

The far-reaching plans still have to be approved by the supervisory board, whose meeting on September 16th also includes the extension of Miguel López's contract on the agenda. In the political arena, the reactions are alarming. Sarah Philipp from the NRW SPD and Jochen Ott, the SPD parliamentary group leader, express great concern about the possible effects on North Rhine-Westphalia as an industrial location. Dennis Radtke, federal chairman of the CDA, also calls for political support and the exclusion of compulsory redundancies.

The negotiations over the fate of Thyssenkrupp are being followed, particularly with regard to subsidies worth hundreds of millions of euros for the conversion to “green” technologies in the Steel Europe division. It should be noted that there is no obligation to maintain jobs under this funding. The NRW state parliament will address the issue with great urgency, as the company secures numerous jobs in the region.

Insecurity among employees

The works council chairman of Thyssenkrupp Steel, Tekin Nasikkol, reports considerable uncertainty and unrest within the workforce. The restructuring plans and the associated fear for their jobs put enormous strain on employees and lead to a tense atmosphere in the company. The involvement of Czech billionaire Daniel Kretinsky in the steel sector also raises additional questions, particularly regarding future investments and the stability of the business.

In summary, Thyssenkrupp is in a crucial phase in which both corporate strategies and social responsibility towards employees need to be reassessed. Management is faced with the challenge of making the conversion successful while maintaining the trust of the workforce.

For further details on this topic, we refer to the reports from Focus and WDR.