FRANKFURT (Reuters) – ThyssenKrupp’s (ETR:) steel division’s new head told a German newspaper that its 27,000 steelworkers should prepare for deep cuts, paving the way for a large number of layoffs.
“Strict cuts are necessary. We have to become more profitable,” said Dennis Grimm, spokesman for the executive board of Thyssenkrupp Steel Europe (TKSE), in an interview with the newspaper Westdeutsche Allgemeine Zeitung (WAZ).
“The current market situation has deteriorated again in recent months, and unfortunately there is no recovery in sight.”
TKSE is emerging from a major tussle with its parent company over funds required in a proposed 50:50 joint venture structure with Czech billionaire Daniil Kretinski, who already owns a 20% stake in the steel business.
A new business plan for TKSE is currently being developed and it is not clear how many jobs could be cut, Grimm said.
“We cannot yet give an exact figure on how many people we will employ once the business plan is finalized and negotiations with employee representatives are completed,” Grimm told WAZ.
“But it will be less than today.”