thyssenkrupp Industrial Solutions steps up transformation program to improve competitiveness
The Industrial Solutions business area, the engineering, construction and naval shipbuilding arm of the thyssenkrupp Group, is systematically continuing its planets transformation program launched in 2016. The chief aim is to sustainably increase the business area’s competitiveness. To this end structural costs are to be cut, overcapacities reduced, and targeted growth and purchasing initiatives driven forward. This process will mean that over the next three years, in addition to the previously announced reduction of up to 500 jobs in the administrative area, up to 1500 further job cuts will be made in operational areas, two thirds of them in Germany.
Under a group-wide benchmarking project in the administrative area, Industrial Solutions had already identified a potential reduction of up to 500 jobs, of which up to 300 in Germany, back in July 2017. However, the restructurings now announced relate to operational areas. Altogether the planned measures are aimed at strengthening the business area’s earning power by up to € 200 million per year over the next three years. In the short term the measures are focused above all on the plant engineering business and naval shipbuilding operations, which have been particularly affected by underutilization and low profitability due to slow order intake in recent years. The automotive systems business, like the auto industry as a whole, is having to refocus in connection with the move towards electric vehicles. The strategy needed for this is to be developed in the coming months.
The Industrial Solutions business area board has already presented its plans to the responsible employee representatives. Talks will now be held with the co-determination bodies to consider how the joint goal of reducing the workforce in a socially responsible way can best be achieved.
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