Steel head Thyssenkrupp prepares staff for ‘tough’ cuts By Reuters

FRANKFURT (Reuters) – Thyssenkrupp’s ( ETR: ) 27,000 steelworkers must prepare for deep cuts, the new head of the conglomerate’s steel division told a German newspaper, setting the stage for significant layoffs.

“Hard cuts are necessary. We need to become more profitable,” said Dennis Grimm, spokesman for the executive board of Thyssenkrupp Steel Europe (TKSE), in an interview with the Westdeutsche Allgemeine Zeitung (WAZ).

“The current market situation has deteriorated again in recent months and unfortunately there is no recovery in sight.”

TKSE is emerging from a major clash with its parent company over funds that are needed in a proposed 50:50 joint venture structure with Czech billionaire Daniel Kretinsky, who already owns a 20 percent stake in the steel business.

Grimm said a new business plan for TKSE is currently being developed and it is unclear how many jobs should be available.

“We cannot yet put an exact figure on how many people we will hire once the business plan has been finalized and negotiations with employee representatives have concluded,” Grimm told WAZ.

“But it will be less than today.”