Thyssenkrupp AG will cut almost twice as many jobs as planned just last year as the German conglomerate’s beleaguered steel business hemorrhages cash.
The company will eliminate a total of 11,000 positions over the course of several years, according to a statement Thursday. It’s forecasting a more than 1 billion-euro ($1.2 billion) full-year net loss, after registering a 5.5 billion-euro deficit for the period that ended in September.
“We will have to move further into the ‘red zone’ before we have made Thyssenkrupp 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.”
Once synonymous with German engineering prowess, Thyssenkrupp is fighting for survival. The pandemic exposed and worsened deep-seated issues at the company, which still employs more than 100,000 people. Its steel division faces severe problems with yawning pension deficits and cheap imports from Asia.
Excluding proceeds from the sale of its elevator division, Thyssenkrupp burned through 5.5 billion euros in the last fiscal period, triple its prior-year outflow. It’s forecasting another 1.5 billion euros of negative free cash flow over the next 12 months.
The Essen-based company said it needs to cut more than the 6,000 jobs planned in May 2019 because of long-term market developments and effects of the coronavirus pandemic.
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