Thyssenkrupp Trims Auto-Parts Workforce as Steel Unit Slashes Capacity Target
Published on 09/30/2026 at 16:10 | Editorial boerse-global.de
Thyssenkrupp's restructuring drive is reaching beyond its steel division. According to media reports, the German industrial group plans to cut between 160 and 180 positions within the chassis operations of its Automotive Technology segment, affecting the Essen and Ennepetal sites.
The news landed softly with investors. The stock changed hands at EUR 14.54, a modest decline of 0.6% on the day.
Chassis Unit Gets a New Shape
The job reductions stem from a broader reorganization of the chassis business inside the automotive supply division. The new structure is scheduled to go live on January 1, 2027, as management responds to shifting conditions across the auto industry.
The move signals that the conglomerate's overhaul is no longer confined to its flagship steel operations. Market attention in recent weeks had centered on the steel unit's restructuring steps, but the supplier business is now being adjusted in parallel.
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Steel Arm Redraws Its Blueprint
On Monday, Thyssenkrupp Steel Europe used a capital markets day in London to lay out the details of its own realignment. The headline number represents a historic break with earlier growth ambitions: annual capacity is being trimmed from 11.5 million tonnes to a new delivery target of 8.7 million to 9 million tonnes.
The retreat from mass-market volumes is deliberate rather than incidental. Quality is meant to take precedence over quantity — higher-grade steels already account for two-thirds of the current product range, and more than EUR 1 billion has been invested in modern facilities in recent years to protect that technological edge. A direct-reduction plant under construction in Duisburg is designed to decarbonize production step by step.
Trade policy is lending a hand. Since July 2026, European safeguard measures with quota and tariff rules have covered more than 80% of the European flat steel market. The portfolio cleanup is already underway as well: the separation from the historic Krupp Mannesmann mills was completed in the summer.
A Shrinking Payroll and a Bigger Profit Target
The pivot away from sheer tonnage comes at a steep cost to the workforce. The personnel plan negotiated with IG Metall at the end of 2025 envisions cutting or outsourcing roughly 11,000 jobs, and more than half of the necessary measures are now considered agreed. About 4,000 reductions have already been executed — though these adjustments do not equate to outright layoffs in every case.
The financial ambitions behind the overhaul are substantial. Restructuring and the associated savings are expected to improve adjusted earnings before interest, taxes, depreciation and amortization by more than EUR 800 million. Over the medium term, the steel division is targeting an adjusted EBITDA of at least EUR 1.2 billion, paired with a margin of at least 11% and positive free cash flow. Spinning off the steel activities, possibly with a minority stake held by Thyssenkrupp AG, remains the stated strategic goal.
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Analysts Stay on the Fence
Sell-side views after the recent presentations remain measured. JPMorgan kept its rating at "Neutral" on Monday and left its price target unchanged at EUR 15.
Despite the ongoing cutbacks, shareholders have had plenty to cheer about. The stock is up 56% since the start of the year. By Wednesday's pre-market reading of EUR 14.64, that gain stood at 57%, though the shares still sit 7.7% below their recent 52-week high.
The path to the medium-term margin goals remains rocky. Executing the remaining personnel measures will demand operational stamina. Should Thyssenkrupp pull off the transformation, it would offer a template for Germany's entire primary materials industry: fewer furnaces, but a firmer foundation.
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