steelin' it up: Thyssenkrupp Steel's Big Chop, 'bout those 11k jobs
Thyssenkrupp Steel to Execute Gradual Job Reduction Strategy - Thyssenkrupp Steel seeks a social agreement for workforce reductions
Yo, listen up! Thyssenkrupp Steel Europe, Germany's grizzliest steel manufacturer, is ready to take the plunge and axe around 11,000 employees from their current workforce of 27,000. This massive downsizing is all part of the company's long-term strategy, which they first shared back in November 2020.
The new head of personnel, Dirk Schulte, recently spilled the beans to the Westdeutsche Allgemeine Zeitung (WAZ) that they're gunning for negotiations with IG Metall, the country's union kingpin, to discuss this social plan. Here's the lowdown: this social plan is equipped with all sorts of goodies, like early retirement packages, severance deals, and even transfer companies to help out those who get let go. Schulte stressed, "The number 11,000 stands," implying it's no half-baked joke.
But don't think IG Metall's gonna lie down and take it. Heck no! IG Metall ain't shy about voicing their displeasure. At the end of last year, they laid down some demands before jumping into negotiations: no more dismissals or site closures due to operational reasons, and a secured long-term financing deal from Thyssenkrupp Steel.
To give you a little taste of what's been happening since November 2020, Thyssenkrupp Steel presented a plan to trim their workforce by 5,000 jobs via production and administrative adjustments, and by offloading another 6,000 jobs to external service providers or by selling off businesses.
Now, here's the inside scoop: by the end of 2030, they're aiming to slash their staff down to a mere 16,000[1][3]. So, buckle up, because it's gonna be a bumpy ride for Thyssenkrupp Steel Europe. IG Metall, a formidable opponent, might have something to say about that, though[1].
- The negotiations between Thyssenkrupp Steel Europe and IG Metall will likely focus on the employment policy, as the company aims to reduce its workforce by 11,000, and IG Metall has demanded no more dismissals or site closures due to operational reasons.
- The downsizing strategy of Thyssenkrupp Steel Europe could potentially impact various EC countries' industries, finance, and business sectors, as the company plans to cut its workforce by more than half by the end of 2030.
