Thyssenkrupp Steel Europe announced this Monday the keys to its industrial strategy for the future to meet the challenges linked to overcapacity and the pressure on competitiveness from cheap imports, particularly from Asia, including a 40% adjustment of its workforce in the years to come by removing certain 5,000 jobs until 2030 and the transfer of another 6,000 to external suppliers.
As announced by the German steel companyImplementation of the key issues paper presented “will be accompanied by a significant reduction in jobs” and other measures aimed at reducing personnel costs.
Thyssenkrupp Steel calculates adaptation
Thus, Thyssenkrupp Steel Europe estimates that the planned adaptation of the group-wide production network and a significant streamlining of administration will lead to the loss of around 5,000 jobs by 2030, while the company plans to transfer 6,000 additional jobs to external service providers.
As part of its plan, with the stated objective of avoiding layoffs for operational reasons, personnel expenses will be reduced by 10% on average in the years to come, thus adjusting them to a competitive cost level.
“We will adapt to new market conditions through capacity adjustments and specific cost reductions,” underlined the CEO of Thyssenkrupp Steel Europe, Dennis Grimm, for whom a “global optimization and rationalization” of the network and production processes.f
“We are aware that this path will require a lot of many people, especially because we will have to DELETE a large number of jobs in the years to come, to be more competitive”, declared the general director of the steel company, whose workforce amounts to around 27,000 people.
