BERLIN, Nov. 25 (Xinhua) -- Germany's largest steelmaker, ThyssenKrupp Steel, announced plans on Monday to cut 5,000 jobs by 2030 and an additional 6,000 through transfers to external service providers or the sale of business activities.
The sweeping restructuring plan will reduce its workforce from around 27,000 to 16,000 employees in response to rising costs and declining competitiveness.
The company cited weak demand in the steel industry and intensified competition as the primary reasons for the move, and aims to lower labor costs by an average of 10 percent over the coming years to achieve competitive cost levels, according to its statement.
"We take our responsibility very seriously and want to create long-term prospects for as many of our employees as possible," said Dennis Grimm, the company's CEO. He emphasized the need for overall capacity reductions alongside cost-cutting measures to adapt to evolving market conditions.
As part of the restructuring, ThyssenKrupp is set to decrease its production capacity from the current 11.5 million tonnes to around nine million tonnes. This reduction aligns with the company's shipment levels from the previous year and reflects future market expectations. The closure of its processing site in Kreuztal-Eichen is also part of the restructuring plan.
Despite these changes, the company reaffirmed its commitment to a green transformation, including plans to complete the first direct reduction plant in Duisburg and explore the use of an electric arc furnace to further reduce carbon emissions.
Hendrik Wuest, minister-president of North Rhine-Westphalia state -- where Thyssenkrupp Steel's headquarters is located -- described the job cuts as a shock to thousands of families and a significant blow to Germany's industrial sector. In an interview with the German newspaper Rheinischen Post, he urged the company to take its social responsibility seriously and work towards a fair agreement with social partners.
Germany's Economy Minister Robert Habeck called for stronger support for the country's steel industry in light of the announcement, according to the German Press Agency.
