Breaking: 11,000 Jobs on the Line as another German Company Stumbles

Thyssenkrupp Steel has unveiled plans to cut 11,000 jobs by 2030—approximately 40% of its workforce—in a sweeping move to improve its financial health and competitiveness.

The company announced Monday that it would eliminate about 5,000 positions through reduced production and streamlined administration. Another 6,000 roles will either be outsourced to external service providers or eliminated through the sale of business units.

In its statement, Thyssenkrupp Steel cited global overcapacity, cheap imports—especially from Asia—and the urgent need to enhance productivity and efficiency as key factors driving the decision.

The company emphasized the importance of achieving a competitive cost structure to survive in an increasingly challenging market.

The announcement is the latest sign of distress in Germany’s industrial sector, which faces mounting challenges, including competition from Chinese manufacturers, high labour costs, elevated energy prices linked to Russia's 2022 invasion of Ukraine, and longstanding structural disadvantages like heavy taxes.

Germany’s economy, Europe’s largest, contracted in 2022 for the first time since the COVID-19 pandemic, with another decline predicted for this year by the European Commission.

Thyssenkrupp’s move aligns with similar cost-cutting measures by other industrial leaders. Volkswagen, Germany’s largest manufacturer, recently announced plans to reduce employee pay by 10%, close three domestic factories, and lay off tens of thousands of workers to safeguard its future.

Meanwhile, U.S. automaker Ford has revealed plans to cut nearly 4,000 European jobs over the next three years, mostly in Germany and the United Kingdom, while urging the German government to reduce manufacturing costs and boost investment in EV charging infrastructure.
Source: CNN