Thyssenkrupp Slashes 11,000 Jobs in Bold Move to Weather Steel Industry Storm
1min read German industrial giant Thyssenkrupp has announced plans to cut approximately 11,000 jobs by 2030, a strategic response to escalating challenges within the global steel industry. The company aims to address significant financial losses incurred from the worldwide oversupply of steel and rising energy prices. Of the total job reductions, around 5,000 positions will be eliminated within the steel division, with an additional 6,000 roles outsourced or removed through divestment of certain business units.
As part of its restructuring efforts, Thyssenkrupp will also shut down a processing plant, reducing its steel annual production capacity from 11.5 million tons to a range between 8.7 million and 9 million tons. These measures are seen as necessary steps to bolster the company's operational efficiency and competitive edge in an increasingly challenging market environment dominated by low-cost imports from Asia.
The German economy, considered the Eurozone's largest, faces ongoing struggles with economic slowdown and an underperforming manufacturing sector. Key challenges include substantial competition from China, high labor costs, and burdensome taxes. Additionally, the conflict in Ukraine has further exacerbated the situation by driving up energy costs, prompting companies like Thyssenkrupp to reassess and restructure their operations.
In this economic climate, other industry giants, such as Volkswagen and Ford, have also made tough decisions to streamline operations, including wage cuts, factory closures, and job reductions. As Germany navigates these turbulent waters, industry groups have called for a comprehensive transformation through investments in infrastructure, research and development, education, and renewable energy, aiming to safeguard the future of Germany's industrial output and secure its competitive standing on a global scale.