11,000 jobs will be lost at Thyssenkrupp | Free Press

Thyssenkrupp is deeply in crisis. The corona pandemic has compounded long-standing problems for the traditional group. Presenting the balance sheet, CEO Merz confirmed employee fears.

Essen (dpa) – Thyssenkrupp, an industrial and steel group in crisis, wants to cut significantly more staff than planned.

Over the next three years, an additional 5,000 jobs will be cut, the company announced Thursday when it presented its balance sheet for the 2019/2020 fiscal year that ended in late September. Thyssenkrupp announced the reduction of 6,000 jobs last year. A total of 11,000 jobs will be lost, of which 3,600 have already been eliminated.

“We are not yet where we need to go. The next steps may be more painful than the previous ones. We will still have to go, ”Executive Director Martina Merz said according to the announcement. Thyssenkrupp left open the question whether the reduction should also come with redundancies for operational reasons. They are “still the last resort. However, for the moment, we cannot expressly rule them out, ”said Oliver Burkhard, Director of Human Resources. Together with the workers’ representatives, the management will find “adequate instruments, depending on the scope and severity of the economic situation”.

In the first fiscal year under Merz’s leadership, Thyssenkrupp was in the red. The steel sector in particular has become a millstone for the group. Operating income (adjusted EBIT) accumulated less than 1,600 million euros, of which 946 million euros came from the steel sector. Last year Thyssenkrupp had recorded a loss of 110 million euros. Sales fell 15 percent to 28.9 billion euros.

The Executive Board is expected to make a fundamental decision on how to proceed with the steel at Thyssenkrupp in spring 2021. One explores “open and different competing options,” the message reads. Partnerships, a partial or total sale are possible. IG Metall is calling for the state to unite to prevent the steel division from running out.

With the sale of the profitable elevator division at the beginning of the summer, which generated a profit of around 15,000 million euros, Thyssenkrupp made a dent financially. The group is still a long way from making a profit. “We will have to go further into the ‘red zone’ before we have made Thyssenkrupp fit for the future,” Merz said. For the 2020/2021 fiscal year, the group expects a loss of around triple digits in million euros.