German steel manufacturer Thyssenkrupp Steel Europe plans to eliminate 5,000 jobs and an additional 6,000 positions by 2030 by selling its business operations or transferring it to external suppliers, Reuters reported, citing information from the company.
The cuts represent approximately 40 percent. Thyssenkrupp's workforce – the company currently employs 27,000 people.
Thyssenkrupp announces layoffs
Germany's largest steelmaker is in trouble due to pressure from cheaper, high-end Asian competitors energy prices and a cooling global economy, which has led to operating losses in four of the last five years.
“Urgent actions are necessary to improve Thyssenkrupp Steel's productivity and operational efficiency and achieve competitive cost levels,” the company said in a statement quoted by Reuters.
The new strategy also envisages reducing production capacity from 11.5 million tonnes to 8.7 to 9 million tonnes, which will allow “adjustment to future market expectations,” Thyssenkrupp pointed out.
He added that the plant in Kreuztal-Eichen was to be closed.
The sale of the Duisburg plant – Huettenwerke Krupp Mannesmann – is also a key part of the planned capacity reduction. If a sale proves impossible, the company will hold talks with other shareholders about closing scenarios, the company explained.
Earlier this month, Thyssenkrupp cut the value of its steel division by another 1 billion euros ($1.06 billion), blaming the sector's deteriorating prospects, Reuters reported.
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