Expanding Employment Opportunities: Thyssenkrupp Steel Board's Plan - Thyssenkrupp-Steel Board Prioritizes Workforce Transition: 'Securing Employment for Individuals'
Let's dive into the latest news surrounding Germany's largest steel manufacturer, ThyssenKrupp Steel, and their plan to streamline operations by reducing a substantial number of jobs.
In an exclusive interview with the West German General Newspaper (WAZ), Personnel Director and Labor Director Dirk Schulte laid out their approach to the upcoming workforce reduction: "Our priority is helping folks land on their feet in new jobs."
The negotiations with employee representatives regarding these job cuts are set to kick off promptly and are projected to wrap up come summertime, according to Schulte. ThyssenKrupp Steel's endgame is to reduce capacity and shed a total of 11,000 jobs in the upcoming years, with layoffs kept to a minimum.
Schulte pointed out the disparity in ThyssenKrupp Steel's production costs compared to their rivals, underscoring the necessity of cutting 5,000 positions due to adjustments in production and administrative sectors, while an additional 6,000 will be outsourced to external service providers or through business sales. Currently, the company employs approximately 26,300 individuals, primarily in North Rhine-Westphalia, with major sites in Duisburg, Bochum, Dortmund, and South Westphalia.
Key Insights
- Job Reduction Impact: ThyssenKrupp Steel aims to reduce its workforce by approximately 11,000 jobs, with around 5,000 positions being cut due to production and administrative adjustments, and another 6,000 positions through outsourcing.
- Social Plan Measures:
- Early Retirement: The company will offer early retirement options to some employees, fostering voluntary reductions in the workforce.
- Severance Packages: Employees who leave the company will receive severance packages to ease their transition.
- Transfer Companies: Establishing transfer companies to aid personnel in transitioning to new roles, whether within or outside ThyssenKrupp, by offering training and placement services.
- Timeline: The restructuring efforts are projected to be completed by the end of 2030, resulting in a total workforce reduction from nearly 27,000 to around 16,000 employees in the affected divisions.
- Union Involvement:Union representatives, particularly IG Metall, are actively engaged in negotiations concerning the social plan, focusing on measures to support affected employees and securing long-term financial sustainability for the company.
- Broader Strategic Context: ThyssenKrupp Steel's job cuts are part of a larger strategic realignment, with a focus on making business areas more autonomous and open to third-party investment. This transformation ripples across various units, including automotive technology and green technology.
- In an effort to support employees impacted by ThyssenKrupp Steel's job reduction, the company is establishing transfer companies that provide vocational training and placement services, leading to potential careers in various industries, such as finance, business, or industry.
- As part of their social plan measures, ThyssenKrupp Steel will offer vocational training programs to help employees transition into new roles within or outside the company, ensuring a smoother financial transition with provided severance packages.
