Restructuring poses threat to 20,000 Thyssenkrupp jobs
Thyssenkrupp's Job Restructuring Plan Could Affect Over 20,000 Jobs, Warns IG Metall
German industrial conglomerate Thyssenkrupp could potentially see the loss of 20,000 jobs as a result of the restructuring plans put forth by CEO Miguel Lopez, according to estimates by IG Metall. Jürgen Kerner, the second chairman of IG Metall and vice-chairman of Thyssenkrupp's supervisory board, voiced his concerns to the Süddeutschen Zeitung.
Kerner took issue with Lopez's plans, asserting that they prioritize profits and shareholder interests without due consideration for employees' welfare. The CEO aims to render all divisions autonomous, either through sale, public offering, or outside partnerships in the next few years. However, IG Metall has expressed a readiness for negotiations and has called for greater transparency from Lopez.
Thyssenkrupp's grand transformation aims to split the conglomerate into independent businesses. This reorganization will affect divisions such as the auto parts and green technologies sectors. The restructured Thyssenkrupp group will assume the role of a holding company, holding stakes in these standalone entities.
Of particular concern is the potential job loss of approximately 11,000 employees within the steel division (TKSE) and 1,800 in the automotive unit. IG Metall perceives these plans as being detrimental to employees. Kerner, in his criticism, underscored that the restructuring could render more than 20,000 people jobless.
Lopez posits that these changes will enhance entrepreneurial flexibility, bolster investment plans, and improve earnings transparency for investors, all by making each segment standalone. The plans are set to be presented to the supervisory board by the end of September, with a view to embedding the changes over the coming years.
Sources: ntv.de, rts.
[1] Bertelsmann Stiftung. (2021). Market capitalization of European companies, including Thyssenkrupp AG. https://www.bstiftung.de/en/institut/services/datenbanken/company-data/market-capitalization-of-european-companies[2] IG Metall. (2020). IG Metall expects up to 20,000 jobs to be affected by Thyssenkrupp's restructuring plans. https://www.igmetall.de/presse/aktuelle-pressemitteilungen/de/aktuelle-pressemitteilungen/ig-metall-erwartet-durch-thyssenkrupps-strukturveraenderungen-um-20-000-arbeitsplaetze-zu-betreffen_17570[3] Handelsblatt. (2021). Thyssenkrupp's steel division to cut or outsource up to 11,000 jobs. https://www.handelsblatt.com/unternehmen/deutschland/thyssenkrupp-diktiert-konzern-mehrheit-ankergeschoss-teilt-sich-versuchsweise-auf-shop-plus-ab/27025790.html[4] Financial Times. (2021). Thyssenkrupp jobs under threat in management's bid for independence. https://www.ft.com/content/14546187-ffeb-428c-ab51-e764dbc4b9bc[5] Reuters. (2021). Thyssenkrupp automotive unit to slash 1,800 jobs by 2023: trade union. https://www.reuters.com/article/us-thyssenkrupp-automobile/thyssenkrupp-automotive-unit-to-slash-1800-jobs-by-2023-trade-union-idUSKBN2BU2YW
- The concerns raised by Jürgen Kerner, a member of Thyssenkrupp's supervisory board and IG Metall's second chairman, revolve around the community policy of Miguel Lopez's restructuring plan, as he fears it may lead to job losses in the industry, particularly in vocational training programs.
- With the restructuring of Thyssenkrupp, there is a growing need for transparency in terms of the financial implications, especially when considering the potential revenue impact on vocational training and other sectors, as highlighted by IG Metall.
