German Thyssenkrupp, which makes its living from the automotive industry, is now under such financial pressure that it urgently needs to find and cut 1,800 jobs. A manager calls it necessary.
German industrial giant Thyssenkrupp will urgently lay off 1,800 employees in its automotive division.
The decision was made because wage costs and general costs exceed a general weak demand in the automotive industry.
"The outlook for the global automotive industry remains weak," Volkmar Dinstuhl, head of the company's automotive division, told the newspaper waz.de.
The automotive industry is facing a period of significant challenges, and now the industrial company Thyssenkrupp is taking the consequences by embarking on extensive cost-cutting measures.
The company, which operates as one of the major suppliers of automotive parts worldwide, plans to reduce its workforce by approximately 1,800 employees.
1,800 people follow 11,000 layoffs from last year
"Production volumes are constantly below historical lows. Discussions about new tariffs are creating further uncertainty," says Volkmar Dinstuhl.
The round of layoffs is part of a broader action program that will enable Thyssenkrupp to find 150 million euros on the bottom line.
As part of the savings plans, the company will introduce a hiring freeze that will particularly affect the highest paid employees.
It is not yet clear which specific factories or departments will be most affected by the savings.
The decline in the automotive industry has already had significant consequences for several large companies in the industry.
Companies like Volkswagen, Nissan and Stellantis have all made it clear that several thousand jobs will be cut, as well as several factories will be closed.
This is primarily because the factories are geared towards production that is no longer in demand. At least not at the same pace as before.
Thyssenkrupp has already had a challenging 2024. Back in November, management asked 11,000 people to leave. And now another 1,800 people are to be cut. Partly because the number of orders has shrunk by 10 percent.
– We cannot avoid the demands of the market, even though we continue to believe in our technical expertise and prudently invest in future growth, says Dinstuhl.
Kerstin Ney, the HR director in the automotive department, considers the layoffs a necessary action to maintain competitiveness and secure jobs in the company in the long term.
– We will seek solutions together with employee representatives to minimize the impact on employees, says Ney.
Thyssenkrupp Automotive Technology currently has approximately 31,000 employees worldwide. The automotive industry is the Germans' largest business area.
