Thyssenkrupp to Cut 1,800 Jobs on Automotive Weakness
FRANKFURT – Thyssenkrupp has announced plans to cut approximately 1,800 jobs as it grapples with ongoing challenges in the automotive sector, which it supplies. This German conglomerate joins the growing list of companies in the automotive industry forced to reduce staff numbers.
Thyssenkrupp cited “persistently challenging market conditions in the global automotive industry” as the primary reason behind the job cuts. The company also mentioned that hiring will be frozen and overall measures are projected to save more than 150 million euros, equivalent to around $162 million.
“Production volumes continue to lag behind historical lows, and discussions about new tariffs are creating further uncertainty,” commented Volkmar Dinstuhl, a member of Thyssenkrupp’s board who oversees the automotive business.
Alongside job cuts, the company announced plans to reduce investments, aligning with the forecasted decline in sales volumes. This strategic adjustment comes as a response to current market realities, and its effects will be closely monitored.
The automotive sector, both for carmakers and suppliers, is under considerable pressure across Europe due to dwindling demand, rising operational costs, and a slower-than-anticipated transition to electric vehicles. These factors have compelled many industry players to reevaluate their workforce and operational strategies.
Dinstuhl further added, “We cannot escape these market pressures, although we remain convinced of the future viability of our technologically leading component businesses.” This statement indicates Thyssenkrupp’s ongoing belief in the strength and potential of its technology-driven components division despite current setbacks.
As the industry continues to face formidable obstacles, Thyssenkrupp’s decision reflects a broader trend within the automotive sector. Companies are being forced to adapt swiftly to survive the economic challenges while preparing for an eventual upturn and transformation in automotive technologies.
