Thyssenkrupp's workforce faces potential job losses exceeding 20,000, according to IG Metall.
Thyssenkrupp's Restructuring Plans Spur Job Loss Concerns
The restructuring plans of Thyssenkrupp, led by CEO Miguel López, could potentially lead to the loss of tens of thousands of jobs, according to estimates by the German metalworkers' union, IG Metall. Jürgen Kerner, IG Metall's second chairman and vice-chairman of Thyssenkrupp's supervisory board, shared his concerns with the Süddeutsche Zeitung, stating that over 20,000 employees could be affected.
With 96,000 employees, this figure equates to one in every five positions within the company. Kerner is especially critical of the restructuring's focus on maximizing profits and shareholder interests, arguing that employees have been overlooked in the process.
Thyssenkrupp operates in various sectors, including automotive supply, machinery manufacturing, materials trading, steel production, and shipbuilding. Its steel producer, Thyssenkrupp Steel Europe (TKSE), and shipyard group, Thyssenkrupp Marine Systems (TKMS), are key components of the conglomerate.
López announced his intention to make all divisions independent and prepared for partner involvement or an initial public offering (IPO) in the coming years. The plans regarding TKMS are the most advanced, with the supervisory board reportedly set to decide on an IPO as early as June.
However, contentious issues remain, primarily the question of employee co-determination at TKMS post-IPO, as per Kerner's discussion with the SZ. López has been criticized for his lack of support for co-determination, and the spin-off could establish a precedent for the independence of the other divisions.
Kerner also expressed concerns about Czech billionaire Daniel Kretinsky, who acquired a 20 percent stake in TKSE last year and may increase his holdings to 50 percent. Kerner voiced his reservations about Kretinsky as a suitable owner, pointing out that the latter had refused to present his investment plans to employee representatives for over a year.
Thyssenkrupp is currently undergoing a significant restructuring and realignment process, aiming to improve business agility and attract external investors by September 2025. While specific job loss figures have not been disclosed, ongoing concerns about further reductions, particularly in the steel division, persist.
The restructuring plan involves spinning off divisions such as Material Services, Automation Technology, Marine Systems, and Steel Europe, with some units preparing for market openings and external investments. An agreement in principle on restructuring was reached between IG Metall and Thyssenkrupp Steel in May, with further negotiations aiming to finalize a collective bargaining agreement by summer 2025.
This suggests ongoing social dialogue and mitigation efforts around job impacts. However, the planned transformation into a holding company owning stakes in previously integrated business units has raised concerns about the erosion of employee co-determination rights, given the potential shift towards third-party investors and market-driven models.
- concerns about job losses persist in the steel division, as Thyssenkrupp's restructuring plans aim to spin off divisions like Steel Europe, attracting external investors and potentially affecting thousands of employees.
- Banks and insurance companies might be interested in investing in Thyssenkrupp, as López announced plans to prepare all divisions for partner involvement or an IPO, especially with the shipyard group, Thyssenkrupp Marine Systems, and the steel producer, Thyssenkrupp Steel Europe, being key components.
- The energy sector, specifically steel production, stands to be affected by Thyssenkrupp's restructuring, given Jürgen Kerner's criticism of the restructuring's focus on maximizing profits and shareholder interests, possibly overlooking employees in the process.
