Thyssenkrupp plans 11,000 job cuts as steelmaker shrinks output

# Thyssenkrupp plans 11,000 job cuts as steelmaker shrinks output

*Event date: 2024-11-25*

Thyssenkrupp Steel Europe said it plans to cut its workforce from about 27,000 to 16,000 within six years, a move that would remove 11,000 jobs from the company’s current structure. The Duisburg-based group said 5,000 jobs in its European steel operations would go by the end of 2030, while another 6,000 positions would disappear through outsourcing or business sales.

The scale of the plan makes it one of the most aggressive restructuring announcements in German industry this year. The company said cheap imports, especially from Asia, are putting significant strain on competitiveness, and it wants urgent measures to improve productivity and operational efficiency. It also plans to cut production capacity from 11.5 million metric tons to a target of 8.7 million to 9 million tons, showing that the restructuring is not just about payroll but about the size of the steel business itself.

The company says it hopes to avoid compulsory layoffs and instead reduce staff through voluntary departures. That gives the plan a softer legal shape, but not a gentler effect. The source shows that the management view is that the company must get smaller to survive in its current form. Dennis Grimm, the head of steel, said the business needs comprehensive optimization and streamlining to become fit for the future, while acknowledging that the path would demand a great deal from many employees.

Labor opposition is immediate. IG Metall, which represents much of the workforce, called the plan a catastrophe for employees. That response is unsurprising given the number of jobs involved and the speed at which the division would contract. For workers, the headline is not just the number 11,000 but the way the cuts are split across production, administration, outsourcing and sales. It suggests a broad dismantling of the current steel operation rather than a narrow efficiency drive.

The restructuring is also tied to Thyssenkrupp’s wider corporate direction. The parent company wants to transform the steel division into a fully independent company, but that proposal has already met opposition from labor leaders. The source says Czech energy company EPCG currently holds 20% of Thyssenkrupp Steel and plans to raise that to 50%, a reminder that ownership is also changing while the workforce is being reduced.

The company’s financial position underlines the pressure. Thyssenkrupp recorded a €1.5 billion loss for the 2023-24 financial year after losing about €2 billion the year before. That loss context explains why management is pushing such a deep reset. But the evidence in this packet makes clear that the proposed fix is painful: fewer jobs, less capacity and a leaner steelmaker trying to survive in a difficult global market.

The ownership angle adds another layer of change. Thyssenkrupp wants to turn the steel division into a fully independent company, while EPCG is set to increase its stake. That means the restructuring is not only about shrinking the business but also about changing who controls it and how it is financed. For employees, the result is a combination of fewer jobs, lower capacity and a future that depends on decisions made during a major corporate reorganisation.