Published by Global Banking & Finance Review®
Posted on December 3, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on GoogleThyssenkrupp extends layoff agreement with IG Metall to 2028, focusing on responsible job cuts amid restructuring and potential steel division sale.
FRANKFURT, Dec 3 (Reuters) - Germany's most powerful union IG Metall on Wednesday said that compulsory layoffs would remain a last resort at conglomerate Thyssenkrupp, adding an agreement with management on the matter had been extended into 2028.
Thyssenkrupp earlier this year announced it would turn into a holding and divest stakes in all of its businesses via spin-offs, divestments or listings to simplify its structure and raise returns.
IG Metall said as a result an agreement -- whereby any layoffs would be made in a socially responsible manner while the focus was primarily on cutting material costs -- was extended until September 30, 2028.
"The extension of the basic agreement is an important success in uncertain times," said Juergen Kerner, deputy chairman of Thyssenkrupp's supervisory board and deputy head of IG Metall.
"It creates security for employees and guarantees co-determination in the upcoming restructuring of the group. Especially in view of the upcoming restructuring, it is crucial that employees are involved on an equal footing and that their interests are fairly taken into account."
Thyssenkrupp is currently in talks to sell its steel division to India's Jindal Steel International and is also cutting up to 11,000 jobs at the unit, either by reducing or outsourcing them.
(Reporting by Christoph SteitzEditing by Ludwig Burger)
Thyssenkrupp is a German multinational conglomerate with a focus on industrial engineering and steel production, known for its diverse portfolio including steel, automotive, and elevator manufacturing.
Compulsory layoffs refer to the involuntary termination of employees by an employer, often due to restructuring or financial difficulties, and are typically seen as a last resort.
IG Metall is Germany's largest trade union, representing workers in the metal and electrical industries, advocating for their rights, wages, and working conditions.
A holding company is a parent corporation that owns enough voting stock in another company to control its policies and management, often used for managing investments.
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