Restructuring poses potential job loss for approximately 20,000 Thyssenkrupp employees.
Article:
Thyssenkrupp's restructuring plans, set forth by CEO Miguel Lopez, may jeopardize the employment of over 20,000 workers, according to union representative Jürgen Kerner of IG Metall. This looming possibility follows Lopez's initiative to convert all company divisions into independent entities that can be sold, listed on the stock exchange, or partnered with in the upcoming years.
Lopez's plans have been criticized for their narrow focus on boosting profits and appeasing shareholders, seemingly disregarding employee interests. Kerner addressed these concerns in an interview with Süddeutsche Zeitung, expressing the need for greater transparency from Lopez in discussions with employee representatives.
The company is proceeding with its restructuring aims, which involve splitting into standalone businesses, such as Material Services and Automation Technology, and parts of its steel operations. The ultimate goal is to improve entrepreneurial autonomy, attract external investments, and deliver enhanced transparency to investors.
The steel division has already seen job cuts, heightening concerns about job security. While an agreement in principle has been reached with IG Metall to avert operational layoffs by summer 2025, the broader restructuring process has sparked worries about potential job losses across Thyssenkrupp. With the transformation into standalone businesses, the employment landscape could become more flexible and potentially stable in the long term, subject to the success of the restructuring efforts.
- In the context of Thyssenkrupp's restructuring, it is crucial for the company to establish a community policy that ensures transparent communication with employee representatives about vocational training programs, as this could help maintain a skilled workforce for the newly independent business entities, especially in the industry, finance, and business sectors.
- As Thyssenkrupp proceeds with its restructuring plans, it would be advantageous for the company to consider partnerships with vocational training providers to equip the workforce with the necessary skills for the industry, further ensuring the long-term sustainability of the business and creating a favorable environment for potential investors.
