Thyssenkrupp to cut 3,000 jobs at a struggling steel unit

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FRANKFURT / DUESSELDORF, Germany (Reuters) – Thyssenkrupp Germany Group (TKAG.DE) will cut 3,000 jobs and invest 4.2 billion euros (4.6 billion USD) in the struggling steel division by 2026 as part of a wage agreement signed with the mighty labor union strong IG Metall, on Wednesday.

FILE PHOTO: Thyssenkrupp's logo is seen outside the elevator test tower in Rottweil, Germany, January 21, 2020. REUTERS / Michaela Rehle / File Photo

The measures, following a landmark deal to sell the group's highly acclaimed elevator parts, aim to make steelmaker Thyssenkruppftime compete again with rivals including ArcelorMittal (MT.AS) and Voestalpine (VOES.VI).

Steel business, the second largest in Europe in terms of sales, is reeling from weakening demand, cheap Chinese imports and efforts to merge with Europe's Tata Steel division (TISC.NS), a deal blocked by Brussels for antitrust concerns.

We have been posing issues for too long and staying away from tough decisions, '' said Klaus Keysberg, a board member of Thyssenkrupp, about steel. Agreements give us the opportunity to maneuver so that steel can remain competitive in the long run.

Employment will be cut in a socially responsible manner, without mandatory layoffs until March 31, 2026, Thyssenkrupp, whose engineering business stretches from submarine manufacturing to spare parts. car.

The steel department will receive an annual investment of around 570 million euros, with an additional 800 million split compared to …

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