In concrete terms, the German steel company, with around 27,000 employees, is considering the layoff of around 5,000 employees until 2030 and the transfer of another 6,000 jobs to external suppliers.
This Monday, Thyssenkrupp Steel Europe unveiled the keys to its industrial strategy for the future to tackle the challenges of climate change excess capacity and the pressure on the competitiveness of cheap imports, especially from Asiaincluding a 40% workforce adjustment in the coming years by laying off approximately 5,000 employees until 2030 and transferring another 6,000 jobs to external suppliers.
According to the German steel company, the implementation of the presented document with the key issues “will be accompanied by a significant reduction in the number of jobs” and other measures to reduce personnel costs.
As part of its plan, with the stated objective of avoiding redundancies for operational reasons, Personnel costs are reduced by an average of 10% in the coming years, bringing them to a competitive cost level.
“We will adapt to new market conditions through capacity adjustments and targeted cost savings,” underlined the CEO of Thyssenkrupp Steel Europe, Dennis Grimmfor whom a “comprehensive optimization and rationalization” of the production network and processes is necessary.
“We are aware that this path will demand a lot from many people, especially as we will have to cut a large number of jobs in the coming years to be more competitive,” said the chief executive of the steel company, whose workforce is about 27,000 troops.
Last week, Thyssenkrupp announced that it had signed up losses of 1.4 billion of euros at the end of the financial year, which means that the ‘red figures’ of approximately 2,000 million euros must be reduced by 30% compared to the previous year, after assuming a negative impact of 1,200 million due to the deterioration in the value of its assets, mainly the steel activities in Europe (“Steel Europe”).
It was last Friday bosch which announced an adjustment plan that includes the layoff of 5,500 employees in the group’s mobility division, as weak demand for electric vehicles and the arrival of Chinese competition accentuate the crisis in the automotive sector in Europe.
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
