Bochum in crisis: Thyssenkrupp closes plant and cuts 11,000 jobs!

Bochum in crisis: Thyssenkrupp closes plant and cuts 11,000 jobs!

The closure of the Thyssenkrupp plant in Bochum is now a done deal. In a decisive agreement, Thyssenkrupp and IG Metall signed a restructuring collective agreement on July 12th that has profound effects on the workforce and the future direction of the company. The contract provides for socially acceptable job cuts of up to 11,000 jobs, with redundancies excluded until 2030. Nevertheless, production at the BNO plant in Bochum will be gradually stopped by September 30, 2028, affecting around 550 employees, as Radio Bochum reports.

The closure is part of a comprehensive restructuring that is considered one of the most profound periods of change in the company's history. Thyssenkrupp is pursuing tough austerity measures for its steel division and will also demand wage concessions from the workforce. These cuts also include adjustments to working hours and special payments. Employees have already accepted that there will be cuts in anniversary bonuses and other financial benefits in order to keep the company on track.

A critical turning point

The decision to close the Bochum plant is considered a critical turning point for Thyssenkrupp. As can be read on Börse Express, the steel business is seen as the group's central problem child. However, over the last twelve months, the stock has seen a remarkable rise of over 190 percent, which may be due to the current restructuring efforts. However, it remains unclear whether the measures will be sufficient to stabilize the group in the long term or whether further plant closures will have to follow.

In addition, Thyssenkrupp is pursuing the strategy of a radical restructuring into a holding structure in order to make all business areas independent and open them up to third parties. This is happening as part of a strategic realignment aimed at maintaining majority stakes in the individual business areas. Still, many employees are concerned about potential layoffs and uncertainty about the future of their jobs. The unions are now calling for more transparency and socially acceptable solutions during the renovation, as ZDF reports.

Looking into the future

The coming months will be crucial, not only for the employees in Bochum, but also for the entire Thyssenkrupp workforce. In the defined renovation process, investments in central production areas have been guaranteed, while the preservation of the plant in Kreuztal-Eichen is ensured. The age bridge for employees born in 1966 and above and co-determination in efficiency measures are intended to create a certain buffer for employees.

But while all eyes are on developments at Thyssenkrupp, the question remains whether these measures will take the right direction to save the group and secure jobs. CEO Miguel López wants to cut 11,000 jobs in the steel sector by 2030, which could increase pressure on remaining employees and unions. The path forward will be complex, and the coming months could be crucial in determining how Thyssenkrupp can emerge stronger from this crisis.