ThyssenKrupp in Germany to Cut Additional 5,000 Employees Amid Financial Difficulties

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Global steel company ThyssenKrupp announced on the 19th (local time) that it plans to cut an additional 5,000 employees due to financial difficulties.

Previously, ThyssenKrupp had already announced last year that it would cut about 6,000 employees, facing opposition from labor unions. With this additional layoff, a total of approximately 11,000 employees will be dismissed.

According to major foreign media, Martina Merz, CEO of ThyssenKrupp, stated, "The company has not fully recovered," adding, "It will be painful, but it is an inevitable measure."

Last year, ThyssenKrupp announced plans to cut about 6,000 employees and has so far laid off around 3,600. Over the next three years, an additional total of 7,400 jobs will be lost.

This layoff measure comes after ThyssenKrupp recorded an operating loss of 1.6 billion euros in the last fiscal year. ThyssenKrupp's stock price has fallen by 60% just this year.

ThyssenKrupp sold its most profitable elevator division to a European private equity consortium for 17 billion euros as part of repaying debt and restructuring its business.

Nevertheless, unable to escape financial difficulties, ThyssenKrupp is pursuing joint ventures such as with India's Tata Steel, but has yet to receive approval from Belgian antitrust authorities.

The German government is reportedly negotiating a support package of 5 billion euros (approximately 6.6 trillion won) to rescue ThyssenKrupp.

ThyssenKrupp's steel business, considered a leading German manufacturing company, has suffered significant profitability deterioration over several years due to expanding pension fund deficits and increased imports of cheap steel from China. Furthermore, with the COVID-19 pandemic severely impacting downstream industries and causing a sharp decline in steel demand, the company is facing a survival threat.

This content was produced with the assistance of AI translation services.