You are here: Home » International » News » Companies
Business Standard

ThyssenKrupp to slash 11,000 jobs after recording $6.5 bn net loss

Sees another billion-euro deficit after 5.5-bn euro loss

ThyssenKrupp | job cuts | Steel companies

William Wilkes | Bloomberg 

he company forecast another more than 1 billion euro deficit for the current period in a statement Thursday.

will cut 11,000 jobs, roughly 10 per cent of its workforce, as the conglomerate’s beleaguered steel business hemorrhages cash and Germany’s government bickers over a possible rescue.

The steel and materials group almost doubled the number of positions it plans to eliminate after recording a 5.5-billion euro ($6.5 billion) net loss for the year that ended in September.

The company forecast another more than 1 billion euro deficit for the current period in a statement Thursday.

“We will have to move further into the ‘red zone’ before we have made fit for the future,” Chief Executive Officer Martina Merz said. “The next steps could be more painful than the previous ones. But we will have to take them.” shares fell as much as 7.6 per cent in Frankfurt trading. The stock has plunged more than 60 per cent since the start of the year.

Once synonymous with German industrial prowess, ThyssenKrupp is now fighting for survival. Its steel division faces severe problems with yawning pension deficits and cheap imports from Asia. The end game for the company is likely to involve a mix of asset sales, restructuring and the ignominy of a taxpayer bailout.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Fri, November 20 2020. 00:44 IST