Thyssenkrupp's Struggling Steel Division Plans Site Closure, Massive Job Cuts

Steel News  |  2024-11-26 11:15:47   |   By

According to a company press release, a total of 11,000 jobs will be slashed.

SEATTLE (Scrap Monster): Thyssenkrupp, the biggest steel manufacturer in Germany, declared that it will significantly reduce its employment by the end of this decade. It will also shut down a processing facility. The action is a component of a broader restructuring strategy meant to increase the business's operational effectiveness and productivity.

ALSO READ:

Thyssenkrupp Re-Evaluates its Green Steel Production Strategy

Thyussenkrupp Kicks Off Talks with Union on Steel Merger

A press release from the corporation states that 11,000 jobs will be eliminated. This will account for over 40% of its staff. There will be two stages to the employment reduction. By 2030, 5,000 jobs will be eliminated in the first phase. Through company sales or transfers to outside service providers, an additional 6,000 positions will be phased out. Over the upcoming years, there will also be a nearly 10% decrease in personnel costs.

The business has announced the closure of its Kreuztal-Eichen processing facility as part of the strategy. Additionally, there are plans to sell Huettenwerke Krupp Mannesmann, its facility in Duisburg. The business will discuss mutually agreeable closure possibilities with other shareholders if a sale doesn't happen. In the future, Thyssenkrupp Steel hopes to cut its manufacturing capacity from 11.5 million metric tons to 8.7 to 9 million metric tons.

The business reaffirmed its dedication to carbon-neutral steel manufacturing and the green transition.