According to foreign media reports, German corporate giant Thyssenkrupp recently stated that due to the long-term downturn in the automotive industry, which supplies parts, the company plans to lay off about 1,800 employees, making Thyssenkrupp the latest company in the automotive industry to lay off employees.
As of the end of September 2024, ThyssenKrupp’s automotive technology department hired more than 31,000 employees, with layoffs accounting for about 5.8% of them. ThyssenKrupp will also suspend recruitment, especially positions above a specific salary level, on the grounds that “the continued severe market situation in the global automotive industry.” In addition, ThyssenKrupp will cut automobile-related investments to meet the expected decline in sales.
The above overall measures are expected to help save more than 150 million euros ($162 million) in cost, the company said.
“Car production continues to fall below all-time lows, and discussions about new tariffs are bringing more uncertainty,” said Volkmar Dinstuhl, a member of the board of directors of ThyssenKrupp, who is in charge of the automotive business.
“The prospects of the global automotive industry are still bleak, and we cannot avoid these market pressures, but we still firmly believe that our technologically leading automotive parts business will still be viable in the future. ThyssenKrupp will continue to invest cautiously in new technologies and future growth areas,” said Dinstuhl.
It is worth noting that in November 2024, ThyssenKrupp Steel also announced that it would lay off 11,000 employees in its steel department. It is reported that the planned production network adjustment and administrative optimization will lead to about 5,000 unemployed people by 2030. In addition, the group will also cut 6,000 jobs by outsourcing some of its businesses to external service providers or selling their businesses.
At present, the European automobile industry, especially German auto companies, are facing many challenges, such as sluggish global automobile demand, high energy prices, slower than expected transformation to electric vehicles, and intensified competition. In addition, Trump’s current tariff policy has added new uncertainty. In recent months, many automakers and parts suppliers have announced large-scale restructuring measures and layoff plans. In February this year alone, several car companies and parts suppliers including Mercedes-Benz, Volkswagen, Skoda, Porsche and Continental announced layoffs.