German steel giant to cut jobs! 11,000 jobs to be cut

German steel giant Thyssenkrupp is implementing a 40% workforce cut as part of a major transformation. The plan includes the layoff of approximately 11,000 jobs.

Work and working hours are reduced

Germany's largest steelmaker, Thyssenkrupp, and the IG Metall union have agreed on a comprehensive restructuring plan. The agreement includes layoffs, plant closures, bonus cuts, and reduced working hours.

Production capacity is shrinking

Thyssenkrupp Steel Europe (TKSE) is expected to cut or outsource approximately 11,000 jobs. This equates to approximately 40 percent of the current workforce. Production capacity will be reduced from 11.5 million tons per year to between 8.7 and 9 million tons.

Long-term savings target and stock sale preparation

The agreement covers a collective bargaining agreement valid until the end of 2030 and aims to save more than 100 million euros annually.

Following this deal, Thyssenkrupp plans to sell an additional 30 percent of TKSE to Czech billionaire Daniel Kretinsky, who currently owns a 20 percent stake in the company.

Dirk Schulte, TKSE Human Resources Manager, described the agreement as “the biggest agreement in the company’s history.”

Tekin Nasikkol, a member of the Thyssenkrupp Supervisory Board, said, "We have created the necessary foundation for the company to get back on its feet under its own power."

Radical change in company strategy

Thyssenkrupp plans to spin off its steel division into an independent entity under a holding company umbrella. This goal has exacerbated tensions between its workforce and management. The company aims to finalize all agreement details by the end of the summer. Achieving a wage agreement was seen as the biggest obstacle to the share sale process. This step could accelerate the sale process.