Berlin – Thyssenkrupp Steel Europe (TKSE), Germany’s largest steel producer, has announced plans to reduce its workforce by 5,000 positions by 2030. An additional 6,000 jobs are expected to be eliminated through outsourcing or the sale of business units. This marks a significant restructuring, cutting the company’s workforce by 40 percent from its current 27,000 employees.
Restructuring Driven by Economic Pressures
The German steel industry, long regarded as a cornerstone of industrial strength, is facing unprecedented challenges. Thyssenkrupp, in particular, has struggled to compete with cheaper imports from Asia while grappling with high energy costs and a slowing global economy. These factors have driven the company into losses in four of the past five years.
In its statement, Thyssenkrupp emphasized the urgency of the restructuring. “Critical measures are necessary to improve productivity and operational efficiency,” the company said. It also plans to scale back production capacity from 11.5 million tons annually to between 8.7 and 9 million tons, aligning with anticipated shifts in market demand.
Plant Closures and Asset Sales
The restructuring will have significant implications for Thyssenkrupp’s operations. The company has confirmed it will close its Kreuztal-Eichen plant, a move that underscores the depth of the cuts. Additionally, Thyssenkrupp intends to sell its Hüttenwerke Krupp Mannesmann (HKM) plant in Duisburg, a historic site within its portfolio.
If a buyer cannot be secured for the HKM plant, Thyssenkrupp has indicated it may negotiate closure plans with the other stakeholders involved in the facility. These decisions follow a €1 billion write-down in November, attributed to worsening market conditions and highlighting the urgency of these restructuring efforts.
Union Response: Fierce Resistance Ahead
Thyssenkrupp’s announcement has sparked outrage from labor unions, with IG Metall taking the lead in opposing the measures. Knut Giesler, IG Metall’s leader in North Rhine-Westphalia, described the plans as a direct attack on workers. “Cutting over 11,000 jobs and closing key facilities will face fierce opposition from IG Metall,” he said.
The union has vowed to organize protests and is calling for socially responsible alternatives to the cuts. With workers also expressing frustration, the company is likely to face considerable obstacles in executing its restructuring plans.
A Watershed Moment for German Steel
Thyssenkrupp’s decision reflects the broader struggles of the German steel industry. Once a hallmark of economic resilience, the sector is increasingly vulnerable to global competition and the rising costs associated with greener energy transitions. Whether Thyssenkrupp’s measures will ensure its long-term viability remains to be seen, but the outcome will undoubtedly have lasting implications for the industry.
