Thyssenkrupp: Leading the Charge with a Restructuring Plan and Job Cuts, Refusing to Back Down
Thyssenkrupp Steel Division to Implement Socio-Economic Strategy, Maintains Commitment to Job Eliminations - Thyssenkrupp Announces Steel Sector's Social Plan, Insists on Job Cuts
It's the big 11k, according to Dirk Schulte, and they're sticking to it. The reasons are simple: inefficient plants humming around the clock and excessively high production costs compared to other steel producers. Schulte believes it's time for a change. Approximately 5,000 jobs will be axed, with another 6,000 outsourced.
The focus of Thyssenkrupp's social plan, as Schulte puts it, is about helping people land new gigs. Negotiations with IG Metall will commence shortly.
Remember the heated argument between the company and the union back in early May? Well, they managed to reach a basic agreement then, paving the way for more discussions. The ambition is a collective bargaining agreement that guarantees employment, plant preservation, and the required investments for the green metamorphosis, according to the union at the time. Layoffs due to operational issues should ideally be averted.
Thyssenkrupp's dear old steel division has been tumbling for years, and they're looking to offload the subsidiary. The EP Group spearheaded by Czech business mogul Daniel Kretinsky has already secured a 20% stake in Thyssenkrupp Steel, with another 30% on the horizon.
- Thyssenkrupp
- Steel Division
- Restructuring
- Dirk Schulte
- Job Cuts
- Job Losses
- IG Metall
Insights into the Thyssenkrupp Steel Division's Strategy:
- Agreement with IG Metall: Thyssenkrupp's steel division and IG Metall have reached a preliminary agreement on restructuring, aiming to rebuild competitiveness and minimize operational layoffs as much as possible[1][2].
- Industrial Concept: The restructuring follows an industrial concept presented by Thyssenkrupp management, focusing on creating a future-ready company[1].
- Planned Job Reductions: Despite efforts to keep layoffs low, Thyssenkrupp plans to trim or outsource up to 11,000 jobs in its steel division over the next five years[3].
- Closure of Plants: As for specific plants, like the one in Kreuztal-Eichen, their fate is undecided, with a decision expected by 2027/2028. No immediate closure plans are in the works[1][3].
- Potential Sale to EP Group: EP Group's Czech billionaire Daniel Kretinsky aims to acquire an additional 30% stake in Thyssenkrupp Steel. However, wage negotiations must be concluded before the sale can proceed[1][2].
- Restructuring and Collective Bargaining Agreement: The restructuring and collective bargaining agreement are crucial steps prior to any sale, ensuring alignment with investor expectations and the company's reorganization goals[1][2].
- Sector-Wide Consolidation and Green Transition: Thyssenkrupp's restructuring echoes broader trends in the European industrial sector, including consolidation and a focus on profitability over scale[5]. The company is also pumping resources into green technologies like decarbonization projects, catching investor interest[5].
- Thyssenkrupp's steel division is working towards restructuring, as outlined in their industrial concept, in an attempt to minimize operational layoffs while creating a more future-ready company.
- With plans to trim or outsource up to 11,000 jobs in the next five years, Thyssenkrupp is also in negotiations with IG Metall for a collective bargaining agreement, aiming to help employees find new opportunities within the industry and ensure alignment with potential investors like the EP Group.
