Thyssenkrupp putting 20,000 jobs at risk in overhaul
BERLIN: Germany's IG Metall union sees around a fifth of jobs at Thyssenkrupp at risk, a senior official was quoted as saying on Friday, following the conglomerate's recent plans to turn into a holding company.
On Monday, Thyssenkrupp said it would pursue plans to sell minority stakes in three of its five divisions, with the other two - submarines and steel - already in the process of being spun off or partly divested.
'The plans could see more than 20,000 employees' positions slashed,' Juergen Kerner, deputy chairman of both the IG Metall union and Thyssenkrupp's supervisory board, told Sueddeutsche Zeitung (SZ) newspaper.
Thyssenkrupp has already announced plans to cut or outsource up to 11,000 jobs at its steel division TKSE and plans to slash around 1,800 jobs at its automotive unit.
Kerner said that Thyssenkrupp's supervisory board would meet in June to approve the spin-off of the group's submarine and warship division TKMS, which is planned for later this year.
Turning to steel, Kerner criticised Czech billionaire Daniel Kretinsky, who last year bought a 20% stake in TKSE and is in talks to acquire another 30% contingent on a job cuts deal with workers.
'I now consider Mr Kretinsky less and less to be the right buyer,' Kerner said, adding the billionaire had resisted sharing his plans for the steel business for more than a year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
3 days ago
- Business Recorder
Thyssenkrupp putting 20,000 jobs at risk in overhaul
BERLIN: Germany's IG Metall union sees around a fifth of jobs at Thyssenkrupp at risk, a senior official was quoted as saying on Friday, following the conglomerate's recent plans to turn into a holding company. On Monday, Thyssenkrupp said it would pursue plans to sell minority stakes in three of its five divisions, with the other two - submarines and steel - already in the process of being spun off or partly divested. 'The plans could see more than 20,000 employees' positions slashed,' Juergen Kerner, deputy chairman of both the IG Metall union and Thyssenkrupp's supervisory board, told Sueddeutsche Zeitung (SZ) newspaper. Thyssenkrupp has already announced plans to cut or outsource up to 11,000 jobs at its steel division TKSE and plans to slash around 1,800 jobs at its automotive unit. Kerner said that Thyssenkrupp's supervisory board would meet in June to approve the spin-off of the group's submarine and warship division TKMS, which is planned for later this year. Turning to steel, Kerner criticised Czech billionaire Daniel Kretinsky, who last year bought a 20% stake in TKSE and is in talks to acquire another 30% contingent on a job cuts deal with workers. 'I now consider Mr Kretinsky less and less to be the right buyer,' Kerner said, adding the billionaire had resisted sharing his plans for the steel business for more than a year.
Business Recorder
6 days ago
- Business Recorder
European stocks recover after Trump delays EU tariffs
FRANKFURT: European shares kicked off the week on a positive note on Monday, recouping the previous session's losses, as markets heaved a sigh of relief after US President Donald Trump delayed his threat to impose a 50% tariff on the region. The pan-European STOXX 600 index closed 1% higher. It had lost 0.9% on Friday after Trump unexpectedly called for sharp tariffs on goods from the European Union, saying that negotiations with the region were not moving fast enough. On Sunday, Trump extended the deadline for tariffs to July 9 from June 1, after European Commission President Ursula von der Leyen said the 27-nation bloc needed more time to produce a deal. The automobiles and parts index, sensitive to tariff-related pressures, led broader gains with a 1.8% rise. However, they were limited by a 3.3% decline in Porsche. Defence companies were among the biggest boosts to the STOXX 600 index, with Rheinmetall and Leonardo gaining over 3% each and the aerospace and defence index advancing 1.7%. The stocks also pulled up the industrial goods and services sector by 1.5%. The defence and auto sectors helped German stocks rise by 1.7%, near a record high. Luxury stocks, highly exposed to the US market, also gained. Shares of Kering, LVMH and Richemont rose about 1% each, as did the broader index. 'While more time for EU-US negotiations is good news, the speed of the rebound in stocks suggests that investors may have become too optimistic on the path for trade discussions,' said Mark Haefele, chief investment officer at UBS Global Wealth Management. The euro jumped along with other risk-sensitive currencies, while euro zone government bond yields were little changed, as Trump backtracked from his tariff threats. Rising concerns about the US economic slowdown and fiscal woes, underscored by Moody's credit rating downgrade on May 16, are pushing investors to limit their exposure to US assets. 'If you want to have a low-risk portfolio, the US is where you would go first, but with the trade tensions and geopolitical tensions, this favourable sentiment has shifted,' said Ipek Ozkardeskaya, a senior market analyst at Swissquote Bank. Trading volumes were lighter than usual due to public holidays in the US and the UK markets. However, US stock futures were up more than 1% each. Thyssenkrupp jumped 8.8% after a weekend report said the submarine and car parts maker plans to hold a shareholder meeting on August 8 to approve an expected spin-off of its warship division. Thyssenkrupp was not immediately available for comment. Zealand Pharma topped the STOXX 600 with a 10% advance.
Business Recorder
15-05-2025
- Business Recorder
Thyssenkrupp's second-quarter profit plunges as tariff uncertainty hits demand
FRANKFURT/DUESSELDORF: Thyssenkrupp's operating profit plunged in the second quarter, hurt by what the German conglomerate said was high economic uncertainty among most of its customers and regions, most notably in automotive and steel. Shares in the submarines-to-car parts group were indicated 3.5% lower in pre-market trade following a 90% drop in quarterly adjusted EBIT to 19 million euros ($21 million), far below the 146 million average forecast in a poll provided by the company. Thyssenkrupp, through its sprawling global structure that also covers materials trading and hydrogen, is exposed to global trade frictions and on Thursday warned that tariffs would negatively impact global automotive production in 2025. 'The introduction of universal import tariffs and individual customs tariffs for major trading partners like the EU and China are having a negative impact on global trade and destabilising international supply chains,' the group said in its first-half report. Thyssenkrupp's steel division, in which Czech billionaire Daniel Kretinsky owns 20%, swung to a 23-million-euro loss, compared with a 68-million profit last year, also hit by maintenance-related outages. The German conglomerate said it still expects adjusted operating profit (EBIT) of 600 million to 1 billion euros and free cash flow before M&A of between 0 and 300 million euros. Second-quarter adjusted EBIT at the group's submarine division, which is currently being prepared for a spin-off later this year, rose 24% to 31 million euros. 'In the second half of the year, we are expecting a more stable market environment and positive effects from the measures we have initiated,' Thyssenkrupp CEO Miguel Lopez said.
