Thyssenkrupp Reaches Agreement With IG Metall on Major Job Cuts in Steel Division

Thyssenkrupp Steel Europe announced on Monday that it has reached a restructuring agreement with the labour union IG Metall that includes significant workforce reductions and a scale down in production capacity.

The company confirmed that the plan will involve cutting or outsourcing about eleven thousand jobs, representing roughly forty percent of its total staff. As part of the restructuring strategy, Thyssenkrupp will also reduce its steel production capacity to eight point seven to nine million tons, down from the current level of eleven point five million tons.

This agreement, which takes effect immediately, is based on an industrial plan presented last year. At that time, IG Metall had expressed strong opposition to any large scale job reductions.

Thyssenkrupp added that financing for the plan has been secured and that all parties have agreed to keep specific details confidential. The agreement will remain in force until September thirty, two thousand thirty.

This report was written by Emanuele Berro in Gdansk and edited by Thomas Seythal for Reuters.

Standards: Thomson Reuters Trust Principles.

Source: Reuters