Economy & Politics

Traditional company cuts a total of 11,000 jobs

Thyssenkrupp was already in crisis before Corona. The situation has not gotten any better. Photo: dpa / Guido Kirchner

Thyssenkrupp is deeply in crisis. The corona pandemic has exacerbated the long-standing problems of the traditional group. When presenting the balance sheet, CEO Merz confirmed the fears of the employees.

Essen – The ailing steel and industrial group Thyssenkrupp wants to cut significantly more staff than previously planned. In the next three years, an additional 5,000 jobs are to be cut, the company announced on Thursday when it presented its balance sheet for the 2019/2020 financial year that ended at the end of September. Thyssenkrupp announced the reduction of 6,000 jobs last year. A total of 11,000 jobs will be lost, 3600 of which have already been cut.

“We’re not where we need to be yet. The next steps can be more painful than the previous ones. We will still have to go, ”said CEO Martina Merz according to the announcement. Thyssenkrupp left it open whether the downsizing should also include redundancies for operational reasons. They are “still the last resort. We cannot explicitly rule them out at the moment, ”said Oliver Burkhard, Chief Human Resources Officer. Together with the employee representatives, the management will “find suitable instruments – depending on the extent and severity of the economic situation”.

Minus over 100 million euros

In the first fiscal year under the leadership of Merz, Thyssenkrupp was deep in the red. The steel sector in particular has become a millstone for the group. The operating result (adjusted EBIT) piled up a minus of 1.6 billion euros, of which 946 million euros came from the steel sector. In the past year Thyssenkrupp had recorded a loss of 110 million euros. Sales fell by 15 percent to 28.9 billion euros.

The Executive Board is expected to make a fundamental decision on how to proceed with steel at Thyssenkrupp in spring 2021. One is exploring “open-ended various options in competition with one another”, it says in the communication. Partnerships, a partial or complete sale are possible. IG Metall is calling for the state to join in order to save the steel division from being sold out.

With the sale of the profitable elevator division in early summer, which brought in a profit of around 15 billion euros, Thyssenkrupp made room for itself financially. The group is still a long way from making profits. “We will have to go further into the“ red zone ”before we have made Thyssenkrupp fit for the future,” said Merz. For the 2020/2021 financial year, the group expects a loss in the mid three-digit million euro range.


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