Germany’s largest steelmaker ThyssenKrupp has announced a plan to cut its current workforce by more than a third by the end of the decade.
German industrial giant ThyssenKrupp Steel Europe on Monday announced a plan to shrink its workforce from the current 27,000 to 16,000 within six years.
The Duisburg-based company blamed an increase in cheap imports, especially from Asia, for putting an increased and “significant strain on competitiveness.”
“Urgent measures are required to improve Thyssenkrupp Steel’s own productivity and operational efficiency and to achieve a competitive cost level,” a statement from the firm said.
Some 5,000 jobs in its European steel operations would be cut by the end of 2030 through “adjustments in production and administration,” it announced.
A further 6,000 jobs are to be outsourced or stripped away in business sales, according to the plan.
To address overcapacity in the market, the company plans to reduce production capacity from the current 11.5 million metric tons to a future target level of 8.7 to 9 million tons.
Thyssenkrupp’s head of steel, Dennis Grimm, said the restructuring was aimed at securing long-term job prospects for as many employees as possible.
“Comprehensive optimization and streamlining of our production network and processes is necessary to make us fit for the future,” he said.
“We are aware that this path will demand a great deal from many people, especially because we will have to cut a large number of jobs over the coming years in order to become more competitive.”
The steelmaker said it hoped to avoid lay-offs, and would instead aim to reduce staff through voluntary departures.
