Thyssenkrupp, the German steel company, plans to reduce its workforce from the current approximately 27,000 to about 16,000 within six years.
The company announced in Duisburg that by the end of 2030, 5,000 jobs will be eliminated, and another 6,000 jobs will be outsourced to external service providers or moved through the sale of business units, affecting a total of 11,000 positions. Additionally, a site in Kreuztal-Eichen will be completely closed, according to Bild.
Declining Demand
Global steel demand has been steadily decreasing, prompting this response from the industrial conglomerate. In the future, the company aims to produce only 8.7 to 9.0 million tons of steel annually instead of the previous 11.5 million tons. This new target aligns with the delivery volume of the most recent business year.
Dennis Grimm, head of Thyssenkrupp’s steel division, stated that their goal is to provide long-term perspectives for as many employees as possible, but this requires adapting to the changing market conditions.
Strategic Adjustments and Green Steel Production
Alongside the cost-saving program, Thyssenkrupp’s parent company aims to strengthen the steel division’s independence. The Czech energy company EPCG currently holds a 20% stake in the steel sector, which they plan to increase to 50%.
Plans for “green steel” production in Duisburg remain unchanged. The company intends to produce hydrogen-based “green steel” in the future. German Economic Minister Robert Habeck and the state of North Rhine-Westphalia have both provided financial support for the project.
Regarding the layoffs, Habeck stated in Berlin: “We must protect our steel industry from non-market-based competitive distortions.” He successfully lobbied with several EU member states to extend the current EU protective measures against steel imports until June 30, 2026. Habeck emphasized their continued commitment to green steel production.
