Thyssenkrupp to Shed Administration Jobs in Cost-Cutting Measure
July 11 2017 - 5:20AM
Dow Jones News
By Ulrike Dauer and Juergen Hesse
FRANKFURT--Germany's Thyssenkrupp AG (TKA.XE) said Tuesday it
plans to cut 2,000 to 2,500 administrative jobs, or about 11% to
14% of its administrative headcount, as it sets out to lower
administrative costs by 400 million euros ($456 million) over the
next three years.
A months-long review of structures and processes found that the
industrial conglomerate's administrative costs of EUR2.4 billion
were "substantially too high," also compared with peers, a
Thyssenkrupp spokeswoman said.
Thyssenkrupp currently employs 18,000 of its more than 154,000
workers in administrative roles.
About half the job cuts will happen in Germany, said the
company, which plans to complete the moves by the end of fiscal
year 2020.
Thyssenkrupp aims to shed the jobs in a "socially compatible"
way and in agreement with labor representatives, by making use of
natural attrition and measures such as part-time work and early
retirement, as is customary in Germany to avoid outright
redundancies.
Thyssenkrupp has had a cost-cutting program in place since
fiscal year 2012 when annual costs were cut by between EUR800
million to EUR1 billion, predominantly in production.
Write to Ulrike Dauer at ulrike.dauer@wsj.com
(END) Dow Jones Newswires
July 11, 2017 05:05 ET (09:05 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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