German conglomerate Thyssenkrupp has announced plans to cut another 7,400 jobs “to address long-term market developments and the effects of coronavirus.”
In May 2019 the company announced a reduction of 6,000 jobs over three years – and around 3,600 jobs have already been cut.
“To address long-term market developments and the effects of coronavirus, thyssenkrupp currently sees the need for a further reduction of altogether 11,000 jobs – measured against the starting situation,” said the company.
“These additional 7,400 jobs are to be reduced over the next three years.”
The news on job cuts came as Thyssenkrupp revealed its performance in the 2019-2020 fiscal year “was significantly impacted by the effects of the coronavirus pandemic.”
Its materials and components businesses in particular suffered from the current slump in demand from the automotive industry and other sectors.
For the 2019-2020 fiscal year to September 30 Thyssenkrupp reported order intake of €28.2 billion, down 17% year-on-year.
Sales decreased by 15% to €28.9 billion.
Despite closing the sale of its elevators business in July for more than €17 billion to cut debt and help fund restructuring, Thyssenkrupp remains in crisis.
The company said it expected to make a decision about what to do with its struggling steelmaking business in the spring of next year.
Thyssenkrupp CEO Martina Merz, said: “Despite the headwind, we have achieved important milestones in the transformation of the group.
“In particular, our strengthened balance sheet gives us the flexibility to systematically implement further necessary steps in our plan for the future of thyssenkrupp.
“But: we’re not yet where we need to be. The next steps could be more painful than the previous ones. But we will have to take them.”