Thyssenkrupp's Steel Unit Launches Tough Restructuring - Thyssenkrupp Steel slashes 11,000 jobs in sweeping restructuring deal
Thyssenkrupp Steel has finalised a major restructuring deal with the IG Metall union. The agreement will cut 11,000 jobs and reduce production capacity by nearly a third. Both sides aim to stabilise the company amid falling demand and low steel prices.
The steelmaker currently employs around 27,000 people. Under the new plan, the workforce will drop to 16,000 by 2030. The restructuring collective agreement runs until September of that year.
Annual production will shrink from 11.5 million tons to between 8.7 and 9 million tons. Job losses will come through voluntary redundancies, spin-offs of business units, and cuts at affiliated companies.
Thyssenkrupp Steel has also ended its supply contract with HKM, with the termination taking full effect by the end of 2032. Discussions about HKM’s future involve representatives from Duisburg city, unions, and business groups. Meanwhile, the company’s existing supply deal with HKM will expire as scheduled on 31 December 2025.
IG Metall accepted difficult terms to secure stability for workers and the company. The union’s agreement covers severance packages and operational changes needed to keep the business competitive.
The restructuring aims to position Thyssenkrupp Steel as a leading player in Europe's steel market. Production cuts and job reductions will reshape the company over the next six years. The deal provides a framework for managing the transition while addressing current industry challenges.
