Thyssenkrupp to cut 1.8 thousand jobs in the automotive division

German industrial conglomerate Thyssenkrupp plans to cut about 1.8 thousand jobs in its Automotive Technology division, Der Spiegel reports.

The company’s measures are aimed at reducing costs by more than €150 million. These steps also include adjusting investments, reducing working capital and temporarily freezing hiring, especially for positions above a certain salary level. At the end of September last year, Automotive Technology employed more than 31 thousand people.

“The outlook for the global automotive industry remains weak,” said Automotive Technology CEO Volkmar Dinstuhl.

According to him, the company also cannot avoid market pressure. However, Thyssenkrupp will continue to invest prudently in new technologies and future growth.

In addition to the existing challenges in the European automotive industry, particularly in Germany – low global demand, high energy prices and increased competition – there is now additional uncertainty due to possible tariffs. Numerous automotive manufacturers and suppliers have announced large-scale restructuring measures in recent months.

Last November, Thyssenkrupp Steel announced that it would cut 11,000 jobs in its steel division. As noted, the planned adjustment of the production network and optimization of administration will lead to the loss of about 5,000 jobs by 2030. Another 6,000 will be cut by outsourcing some operations to external service providers or by selling the business.