Thyssenkrupp Steel announces restructuring plan with 11,000 job cuts

Thyssenkrupp Steel Europe AG has unveiled a restructuring strategy that will result in 11,000 job losses by 2030, as the company seeks to address persistent challenges in the European steel market. The measures, detailed in a key issues paper, include capacity reductions, cost-cutting initiatives, and a commitment to sustainable production.

Major Workforce Reduction

The plan includes eliminating 5,000 positions in production and administration over the next six years. An additional 6,000 roles will be outsourced to external service providers or shed through the sale of business activities. These measures will reduce the workforce of Thyssenkrupp’s steel division from its current 27,000 employees by over 40%.

The closure of the Kreuztal-Eichen processing site is one of the steps aimed at streamlining operations. Production capacity will also be reduced from 11.5 million metric tons to a dispatch target of 8.7–9.0 million metric tons annually, aligning with current market conditions.

Thyssenkrupp Steel’s management has framed the restructuring as essential for achieving a sustainable cost structure. "We are aware that this path will demand a great deal from many people," CEO Dennis Grimm said. "Targeted capacity adjustments and cost reductions are necessary to make us fit for the future."

Responding to Market Realities

The restructuring reflects Thyssenkrupp’s response to what it describes as "fundamental and structural changes" in the European steel market. Overcapacity, declining demand in key customer sectors, and rising competition from low-cost imports—particularly from Asia—have eroded the company's competitiveness.

The measures also come after years of financial strain within the steel division, which has weighed heavily on the broader Thyssenkrupp group. Earlier this year, the Czech EP Group acquired a 20% stake in the steel division, and discussions are ongoing to increase its share to 50%, creating a joint venture. The restructuring plan has the support of both Thyssenkrupp AG and the EP Group.

Focus on Sustainability

Amid the restructuring, Thyssenkrupp Steel has reaffirmed its commitment to sustainability and carbon-neutral steel production. Construction of a €3 billion direct reduction (DR) plant in Duisburg continues, supported by €2 billion in government funding. The facility will replace two blast furnaces and is expected to significantly reduce CO2 emissions.

While the green transformation is seen as a long-term opportunity for the company, challenges remain. Rising costs and delays in hydrogen availability—essential for the DR plant—have raised concerns about the economic viability of the project.

Source and Photo: Thyssenkrupp