Thyssenkrupp to cut 3,000 jobs at struggling steel unit

Thyssenkrupp to cut 3,000 jobs at struggling steel unit
26/03/2020 , by , in ALLIED

German conglomerate Thyssenkrupp will cut 3,000 jobs and invest 4.2 billion euros ($4.6 billion) at its struggling steel division by 2026 as part of a wage deal struck with powerful labour union IG Metall, it said on Wednesday.

The measures, which follow a landmark deal to sell the group’s prized elevator division, are aimed at making Thyssenkrupp’s steel production business competitive once more against rivals including ArcelorMittal and Voestalpine.

The steel business, the second-biggest in Europe by sales, is reeling from weakening demand, cheap Chinese imports and a botched attempt to merge it with the European division of Tata Steel, a deal blocked by Brussels on antitrust concerns. Jobs will be cut in a socially responsible way, with no forced layoffs until March 31, 2026, said Thyssenkrupp, whose sprawling engineering business ranges from making submarines to car parts.

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