A Fresh Take: Thyssenkrupp Steel's Strategic Overhaul and the Future of Workforce
Thyssenkrupp Steel to Implement Redundancy Program - Thyssenkrupp Steel Proposes Employee Welfare Plan for Planned Redundancies
A look at the current negotiations between Thyssenkrupp Steel Europe and IG Metall, and the plans for a social plan to handle job cuts.
The German steel titan, Thyssenkrupp Steel Europe, is gearing up for some major changes, hinting at a potential reduction in its workforce by 11,000 positions. The company's revamped HR head, Dirk Schulte, recently spilled the beans to the West German General Newspaper (WAZ), stating that negotiations with the mighty IG Metall union are imminent.
Thyssenkrupp's proposed social plan is shaping up to include a mix of employee-friendly measures such as early retirement options, handsome severance deals, and transfer firms. Schulte emphasized, "We're not just about slashing jobs, we're about helping our folks land on their feet." The number 11,000 remains unchanged, Schulte reiterated.
Not everyone's on board with the plan though. IG Metall has voiced its resistance, feeling the heat since Thyssenkrupp Steel announced its plans to slim down from a whopping 27,000 employees to a leaner 16,000 over a six-year span, back in 2021. The company aims to shed 5,000 jobs through production and administrative adjustments by 2030, with another 6,000 set to go through outsourcing or business sales [1].
IG Metall responded with some serious sass, proclaiming their "steely resistance." The union demanded a few preconditions before engaging in negotiations, including a commitment to avoiding dismissals and plant closures due to operational reasons, as well as securing the company's long-term financing [1].
Although the details of the upcoming negotiations are under wraps, it seems that Thyssenkrupp and IG Metall are setting a precedent for restructuring efforts that prioritize social consensus and collaboration over forced layoffs [2][3][4].
Sources:1. "Thyssenkrupp expects job cuts to start after talks with union." DW.COM. 2025. Link2. "Thyssenkrupp Steel to Reduce Workforce by at Least 10,000 Jobs in Restructuring Drive." S&P Global. 2021. Link3. "Thyssenkrupp and IG Metall Agree to Non-Layoff Pact." Reuters. 2025. Link4. "Thyssenkrupp Steel's Restructuring Plans: Latest Developments." Industry analysis. 2025. Link
Thyssenkrupp Steel Europe is set to negotiate a social plan with IG Metall, aiming to reduce its workforce by 11,000 positions. The proposed plan includes employee-friendly measures such as early retirement options, generous severance deals, and transfer firms.
However, IG Metall has expressed opposition to the plan, demanding commitments to avoiding dismissals and plant closures due to operational reasons, as well as securing the company's long-term financing before negotiations commence. This potential restructuring could set a precedent for future industrial reorganizations prioritizing social consensus and collaboration over forced layoffs.
[1, 2, 3, 4] (Sources for further details)
