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Industrial group cuts 5,000 jobs – billions in losses

The industrial group Thyssenkrupp incurs a loss of billions in the past fiscal year. That is why the company has to save even more: Another 5,000 jobs are to be cut.

The ailing industrial group Thyssenkrupp continues to use the red pencil after losing billions: An additional 5,000 jobs are to be lost in the next three years, the company announced on Thursday in Essen. Terminations for operational reasons were not excluded. Thyssenkrupp had already announced in the spring of 2019 that it would cut 6,000 jobs, of which 3,400 had already been cut.

In the past 2019/20 financial year (as of September 30), the group slipped deep into the red. The steel business and the supplier business in particular were weak after demand, particularly from the automotive industry, collapsed in connection with the corona pandemic.

Without the elevator business, which has meanwhile been sold, the group had to accept an adjusted operating loss (EBIT) in continuing operations of 1.6 billion euros. Businesses stabilized in the fourth quarter, it said. In the previous year there was still a minus of 110 million euros. Thyssenkrupp had previously announced a deficit of 1.7 to 1.9 billion. The steel business contributed the largest part of the deficit with a loss of almost 1 billion euros.

The group also expects losses in the coming year

To do this, the group had to write off a total of around 3 billion euros on the steel and automotive supply businesses by the end of the fiscal year – in continuing operations, the group posted a net loss of 5.5 billion euros, after a minus of almost 1.2 billion in the previous year.

Thyssenkrupp was able to polish up the balance sheet with the sale of the elevator business, from which the company received 15 billion euros. This resulted in a net profit for the group of just under 9.6 billion euros. Thyssenkrupp does not want to pay a dividend in view of the high losses in continuing operations.

For the coming year Thyssenkrupp is aiming for a “substantial improvement” in adjusted EBIT. Nevertheless, the group will continue to be in the red – management is assuming a loss in the mid three-digit million euro range.

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