Thyssenkrupp is anticipated to unveil preliminary details of a significant restructuring initiative at its steel division in the upcoming week, according to two individuals familiar with the matter. This restructuring is expected to lead to substantial capacity reductions and job cuts within the unit.
The supervisory board of Thyssenkrupp Steel Europe, Germany’s largest steelmaker, is slated to convene on April 11 to deliberate on the strategic plan. The sources, who opted to remain anonymous due to the confidential nature of the discussions, highlighted that the review will serve as the groundwork for negotiations with influential labor unions, which hold half of the supervisory board seats.
The forthcoming discussions may disclose specific areas within the business that will be impacted by the restructuring, including potential changes at the steel joint venture HKM, jointly owned by Thyssenkrupp, Salzgitter, and Vallourec.
While the plan could entail significant job reductions within the business, it remains uncertain whether forced layoffs will occur, as no final decisions have been made yet. Thyssenkrupp had previously agreed with unions to refrain from job cuts in its steel unit until March 2026.
Reports in February indicated that around 5,000 of Thyssenkrupp’s approximately 27,000 steel jobs were at risk. Concerns over a substantial transformation at the division were heightened when Thyssenkrupp Steel Europe’s Chairman Sigmar Gabriel emphasized the necessity for fundamental changes, potentially involving job cuts and capacity adjustments.
The planned overhaul is a response to ongoing challenges in the automotive sector, Thyssenkrupp’s primary client base, which has experienced a slowdown leading to job reductions among key suppliers like ZF Friedrichshafen and Continental AG.
Germany’s largest union, IG Metall, representing Thyssenkrupp employees, has called for a general meeting on April 30 to voice concerns over potential significant cuts and their impact on the workforce.