German company Thyssenkrupp, which is primarily involved in steel production, is set to lay off 11,000 employees out of a total of 27,000 employees in its steel division over 6 years. A drastic reduction in staff that results above all from the crisis. Germany And energy costs are high.
The cuts are related to a crisis that is also related to the energy transition. Thyssenkrupp has chosen to use Hydrogen Producing steel that has less impact on the environment. A decision that proved too costly to keep the finished product competitive, especially compared to orientals made with traditional techniques.
Thyssenkrupp is ready to fire.
German industrial group Thyssenkrupp It is set to lay off 11,000 workers out of a total of 27,000 employees in its steel division. A clean break that will bring the group to four companies that only deal with steel. Total 16 thousand. The decision, reported by Ansa news agency, came after the latest quarterly results confirmed the group’s crisis, particularly in the materials division, which includes steelworks.
According to the management, costs have become too high due to eastern competition. This resulted in the decision to cut a total of 5,000 jobs and move another 6,000 away from Europe, to meet the expected reduction of 11,000 workers over 6 years. Expenditure on children is also expected to decrease. Salary The remaining employees by 10%, to adapt to the new market.
Italy’s job cuts began in October with the unilateral dismissal of 550 Berco workersA company that is part of the Thyssenkrupp Group. Union mobilization alone forced the company to withdraw 480 layoff orders. A ministerial meeting to manage the Berco crisis was held on 25 November, the day Thyssenkrupp’s cuts were announced.
The crisis of Thyssenkrupp’s steel division
Thyssenkrupp’s problems stem mostly from its steel division. The group has sought to make the production process, which starts with raw materials such as coal and is therefore among the highest emitters in the industry, less polluting. The idea was to focus on a technique that employed Hydrogen Which, however, turned out to be very expensive and did not reduce CO2 emissions as much as management had thought.
The results were immortalized in a very complicated third quarter.. 54 million loss 83 million euros in light of profits in 2023. During the year, operating profit almost halved, reaching 100 million euros. Since the start of the year, Thyssenkrupp shares have lost about 36% of their value.
Thyssenkrupp’s crisis is mainly due to German industry. Lower demand for steel, particularly from the construction and automotive sectors, has dampened earnings. Energy costs are high.Due to international tensions with Russia, then cost increases, with efforts to make an environmental transition based on the use of hydrogen. Circumstances and bad choices that forced the administration to make radical cuts.
