Thyssenkrupp Steel's Fierce Overhaul Amidst Economic Strains

Thyssenkrupp Steel plans to reduce its workforce by 40%, impacting 11,000 jobs in a strategic restructuring move. Facing cheaper global competitors and high costs, the company aims to cut personnel expenses and adapt production capacity for future market needs, amidst resistance from unions.

Thyssenkrupp's steel division, Germany's largest steelmaker, is set to reduce its workforce by 40% in a significant restructuring effort. The decision, announced on Monday, follows sustained pressure from cost-effective Asian competitors, escalating power prices, and a waning global economy, resulting in operational losses in four of the last five years.

The restructuring plan involves cutting 11,000 jobs from its 27,000-strong workforce by 2030. The decision aims to lower personnel costs by 10% and includes the closure of the Kreuztal-Eichen plant, impacting 500 employees. Thyssenkrupp Steel Europe also aims to adjust its production capacity to meet future market demands.

Unions like IG Metall have pledged strong opposition to these changes. The broader struggle has seen Germany's industrial pillar challenged by slowed production and rising costs. Economy Minister Habeck supports transitioning to climate-friendly production, underscoring the vital role of steel in Germany's future.

(With inputs from agencies.)