Thyssenkrupp is reportedly planning to cut approximately 1,800 jobs in its automotive technology division due “persistently challenging” market conditions in the global automotive industry .
Thyssenkrupp Automotive Technology chief executive Volkmar Dinstuhl was quoted by Reuters as saying: “Production volumes continue to lag behind historical lows, and discussions about new tariffs are creating further uncertainty.”
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The move also comes in response to the firm’s significant downturn in sales and orders in the last quarter of the previous year.
The German industrial conglomerate is implementing a cost reduction strategy aimed at saving more than €150m ($162m), which also includes a temporary hiring freeze.
As of the end of September 2024, the automotive technology unit had 31,633 employees.
Thyssenkrupp also intends to scale back investments in line with the anticipated decrease in sales volumes.
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By GlobalDataDinstuhl added: “We cannot escape these market pressures, although we remain convinced of the future viability of our technologically leading component businesses.”
Across Europe, carmakers and their suppliers are trimming their workforces due to diminishing demand, escalating costs, mounting pressures, and a transition to electric vehicles (EV).
Dinstuhl was quoted by Wall Street Journal (WSJ) as saying: “As a result, numerous original equipment manufacturers and suppliers have announced extensive restructuring measures in recent months. We cannot escape these market pressures.”
In February 2025, the company revised its sales forecasts for fiscal 2025, citing reduced prices and weaker demand that impacted the automotive technology sector.
Thyssenkrupp anticipates a sales decrease of 0-3%, having previously expected growth within the same range.
In the first quarter of fiscal 2025 that ended 31 December 2024, Thyssenkrupp’s Automotive Technology sector experienced a 12% decline in order intake and a 10% fall in sales compared to the same period a year ago.
Adjusted earnings before interest and taxes in this division plummeted by 75% to €12m.
