Restructuring Plan at Thyssenkrupp Steel: Focus on Job Placement for Employees - Restructuring Initiatives by Thyssenkrupp Steel's Board: Focus on Employment Transition
Germany's colossal steel titan, Thyssenkrupp Steel, is all set to minimize its workforce by maintaining a social agreement for the upcoming job losses. According to Personnel Director and Labor Director, Dirk Schulte, this plan will encompass provisions such as early retirement options, severance packages, and transition entities. The primary focus, Schulte stressed in a West German General Newspaper (WAZ) interview, is on aiding people in finding fresh opportunities.
Negotiations with employee representatives will kick off "soon" and are projected to wrap up by summer, as per Schulte.
Thyssenkrupp Steel aims to dwindle its productions in the forthcoming years and eliminate a total of 11,000 jobs. The company desires to evade operational dismissals. Although negotiations with labor unions about the job cuts are poised to start "soon," the exact number of 11,000 jobs is final. Compared to other steel producers, Thyssenkrupp Steel operates with an excessively high cost. This inefficiency necessitates job reductions, with an estimated 5,000 jobs due to production and administrative adjustments, and an additional 6,000 jobs through outsourcing.
With approximately 26,300 jobs, mainly in North Rhine-Westphalia, significant sites reside in Duisburg, Bochum, Dortmund, and South Westphalia.
- ThyssenKrupp
- Job Cuts
- Dirk Schulte
- WAZ
- Germany
- Steel Corporation
- Transition Companies
As part of its strategic restructuring, Thyssenkrupp Steel Europe intends to diminish its workforce from nearly 27,000 employees to around 16,000 by 2030. The job losses will involve:
- Offering early retirement options to eligible employees.
- Awarding severance packages to terminated employees.
- Establishing transfer companies to help displaced workers find jobs outside Thyssenkrupp[1].
The union, IG Metall, has been partaking in negotiations, vehemently opposing the layoffs and demanding long-term financial solvency for Thyssenkrupp. The union insists on measures to safeguard employees' rights and wages during this process[1][2].
Despite these negotiations, the union contests the planned job reductions and site closures firmly[2].
- In an attempt to streamline operations and secure financial stability, Thyssenkrupp Steel Europe plans to reduce its workforce from 27,000 to 16,000 by 2030, with measures including vocational training programs to assist employees in career development and transitioning into new job opportunities.
- With negotiations ongoing between Thyssenkrupp and the union IG Metall, questions have arisen about the future of education and self-development for workers affected by the impending job cuts, as well as the potential impact on local businesses and overall economic growth in Germany.
