Thyssenkrupp plans to cut 11,000 jobs due to losses

Thyssenkrupp AG’s steel division plans to cut 11,000 jobs over the next decade due to losses from a global steel glut and rising energy costs.

The company will eliminate 5,000 jobs and outsource 6,000 positions to external service providers, aiming to reduce personnel costs by 10%.

Despite employing 27,000 people, the division has struggled to break even amid low steel prices and high investment requirements. High energy costs stemming from the Russia-Ukraine war and pension obligations also pose challenges for the German manufacturer. Increased competition from China also plays a role.

Another German company, Volkswagen (the country’s largest employer), announced recently that it may close three factories amid declining sales and fierce competition from Chinese automakers.

Thyssenkrupp is in talks with Czech billionaire Daniel Kretinsky’s EP Corporate Group to increase its stake in the steelmaker from 20% to 50%.