Thyssenkrupp mulls further job cuts as steel division posts huge loss
German steel giant Thyssenkrupp today raised the prospect of further job cuts as it reported a €2bn loss for the first nine months of the year.
The firm has already made 6,000 roles redundant under an ongoing savings programme, but finance chief Klaus Keysberg told reporters today that more cuts were being discussed.
The majority of the financial hit came from the conglomerate’s steel division, which is facing losses of up to €1m.
The weak performance has increased the pressure on Thyssenkrupp to sell or fix the division imminently.
A number of plans for the division have been drawn up, among which is the possibility that the division could be combined with a rival such as Tata Steel or Germany’s Salzgitter.
Keysberg did not comment on the plans, save to say that the company was considering all options.
“No steelmaker is making a profit at the moment. But in terms of performance, we’re certainly lagging the competition”, he told a press conference.
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Thyssenkrupp, which is Europe’s second biggest steel maker behind Arcelor Mittal, is under pressure due to a combination of cheap Chinese imports, high raw material prices and weak automotive demand.
Shares in the conglomerate fell nearly 16 per cent during the morning’s trading.
Earlier this year the firm sold its elevator business to a private sector group for €17bn, which chief executive Martina Merz said it would use to stabilize the business.
“We have worked hard to keep our costs under control and secure liquidity. As a result we came through the crisis slightly better than initially feared in the third quarter overall,” said Merz.
“While we are now seeing signs of stabilization, the forthcoming restructurings and cleaning up of the balance.
“With the proceeds from the elevator transaction we can now at last systematically address these overdue measures.”