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Thyssenkrupp will lay off 11,000 people to stop losses rising to 1.6 billion euros

Europe / Business and Finance

The largest German industrial concern will increase the number of job losses and will try to sell the unprofitable metallurgical business.

Thyssenkrupp will lay off 11,000 people to stop losses rising to 1.6 billion euros

German conglomerate Thyssenkrupp plans to cut another 5,000 jobs, in addition to previously announced layoffs of 6,000 employees, to stem rising losses of € 1.6 billion in the last fiscal year.

The company said it plans to make a decision on what to do with its struggling steel business next spring after the division suffered losses of nearly a billion euros as the COVID-19 pandemic hit steel demand. ...

Shares of the company, which have already fallen by about 60% this year, have lost more than 7% of their value after this announcement, while analysts said that the prospects for next year are disappointing.

“We reject sweeping group-wide emission reduction programs. For us, this is preventing forced layoffs and preserving as many sites and jobs as possible, ”said Jürgen Kerner, Chief Treasurer of Germany's largest union IG Metall and Deputy Chairman of the Supervisory Board of Thyssenkrupp.

Commenting on the new wave of layoffs, ThyssenKrupp's head of human resources, Oliver Burkhard, said the company "is undergoing one of the largest business restructurings in ThyssenKrupp's history."

Thyssenkrupp, which also makes ships, car parts and trades in industrial materials, has already laid off 3,600 jobs since announcing the first cuts last year.

To help finance the restructuring and reduce debt, Thyssenkrupp sold its elevator business to private equity firms last year for more than € 17 billion, and the company is still in a difficult situation.

Thyssenkrupp tried to set up a joint venture for its steel business with India's Tata Steel, but the deal was blocked by Brussels last year under antitrust laws.

Thyssenkrupp, which has also held talks with Swedish steelmaker SSAB, is currently reviewing an optional indicative offer from British Liberty Steel to sell steel mills in Europe.

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