Thyssenkrupp CEO López dismisses scrutiny over the corporation's disinvestment proposals
Thyssenkrupp CEO Miguel López defends controversial spin-off plans, dismissing claims of a job-cutting program
In a recent interview with Frankfurter Allgemeine Zeitung, Thyssenkrupp CEO Miguel López has sought to allay concerns about the conglomerate's plans to spin off its five divisions, emphasizing that it is not a breakup but a reorganization. López stressed that the new entities would be self-sustaining growth-focused businesses, aimed at bolstering each division's independence and competitiveness.
The spin-off proposals, due to be presented to the supervisory board on September 16, were met with criticism from employee representatives who accused the management of a lack of transparency. However, López contends that necessary preliminary discussions with the relevant bodies were already held, ensuring both the employee and shareholder sides were informed.
Although no definitive timeline for the individual spin-offs has been set, the company plans to first finalize the joint venture for Steel Europe with EPG in Q3 2025, followed by the listing of Marine Systems (TKMS) on the stock exchange in Q4 2025. By 2026, Materials Services and Automotive Technology are to be spun off, marking the culmination of a process aimed at gradually transforming all segments into independent companies under a Thyssenkrupp holding structure.
According to recent reports, the restructuring will result in significant reductions in central administrative staff, with headquarters personnel expected to drop from 500 to 100 and further cuts in administration roles. Union agreements and operational continuity were reached regarding Steel Europe’s workforce, ensuring no job losses as part of the restructuring.
Despite fears of job losses in other areas, López reiterates that the restructuring prioritizes operational agility and value creation over indiscriminate workforce reduction. The CEO explains that the plan is a strategic move to increase entrepreneurial flexibility, strengthen investment plans, and enhance earnings responsibility for each business segment. Independent businesses, he argues, can respond more nimbly to market demands, attract outside investment, and improve transparency for stakeholders.
The restructuring is designed to unlock value within the conglomerate by allowing each division to stand on its own and pursue tailored growth strategies. Thyssenkrupp's eventual transformation into a financial holding company will retain majority stakes in most units, ensuring shareholders benefit from sector-specific growth, not just cost-cutting.
In this restructuring process, Thyssenkrupp aims to increase operational agility and value creation across its various business segments, with a focus on transformation into independent companies rather than indiscriminate workforce reduction. The merger of Steel Europe with EPG and further spin-offs of divisions like Materials Services and Automotive Technology will be guided by a desire for strategic autonomy, flexible responses to market demands, outside investment, and improved stakeholder transparency, all with the ultimate goal of unlocking the conglomerate's hidden value. This business-driven approach also includes significant financial considerations, with the conglomerate eventually evolving into a financial holding company to maximize shareholder benefits from sector-specific growth opportunities.
