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Thyssenkrupp lacks detailed plan for 11,000 steel unit job cuts, Handelsblatt reports
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BERLIN (Reuters) – German industrial conglomerate Thyssenkrupp has not drawn up a detailed proposal on how it aims to cut some 40% of jobs in its steel division, the Handelsblatt newspaper reported, raising questions on the viability of its restructuring plans.
BERLIN (Reuters) – German industrial conglomerate Thyssenkrupp has not drawn up a detailed proposal on how it aims to cut some 40% of jobs in its steel division, the Handelsblatt newspaper reported, raising questions on the viability of its restructuring plans.
Under the plans announced this week, Thyssenkrupp Steel Europe (TKSE), which has a workforce of 27,000, said it would cut 11,000 jobs in total – 5,000 of which would be eliminated by 2030 and another 6,000 shed through spin-offs or divestitures.
Beyond the figure of 11,000 jobs, however, it is unclear how Thyssenkrupp plans to implement the job cuts or reduce steel production capacities, Handelsblatt reported on Tuesday evening, citing sources familiar with the restructuring proposals.
Handelsblatt suggested that the approach, credited to a small team led by Thyssenkrupp CEO Miguel Lopez, leaves unanswered questions about the practicality of the proposed restructuring.
A spokesperson for the steel unit did not immediately respond to an emailed request for comment on Wednesday.
Workers have promised fierce resistance to the cuts at Germany’s largest steelmaker, which has been under pressure from cheaper Asian competitors, high power prices and a weakening global economy.
The steel unit’s works council and union IG Metall are scheduled to hold an extraordinary meeting with board members behind closed doors on Wednesday afternoon, followed by a press conference.
(Writing by Miranda Murray; Editing by Jacqueline Wong)
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