Thyssenkrupp Stock: Major Workforce Cut Amid Recovery Signs

Thyssenkrupp has unveiled an extensive restructuring plan for its steel division, targeting a dramatic workforce reduction from 27,000 to approximately 16,000 employees by 2030. The comprehensive transformation involves eliminating 5,000 positions and transferring an additional 6,000 jobs through business unit divestitures. This strategic overhaul comes as the company grapples with deteriorating economic conditions, necessitating swift action to restore competitiveness in the market. The labor union has expressed concerns about the restructuring plans, seeking assurances against compulsory redundancies.

Market Performance

Despite challenging circumstances, Thyssenkrupp's stock has shown resilience, trading at €3.91 with a modest uptick of 0.7 percent. While current trading levels remain significantly below the 52-week high of €6.98 recorded in December 2023, analysts maintain an optimistic outlook, setting an average price target of €5.05. The company's financial performance shows signs of improvement, with losses per share decreasing from €3.23 in the previous year to €1.70 in the latest quarter.