FRANKFURT (Reuters) – Thyssenkrupp plans to slash around 1,800 jobs due to the prolonged weakness in the car sector it supplies, the German conglomerate said on Thursday, becoming the latest player in the automotive industry to cut staff.
Citing “persistently challenging market conditions in the global automotive industry”, Thyssenkrupp said it would also freeze hiring and said measures overall were expected to help save more than 150 million euros ($162 million).
“Production volumes continue to lag behind historical lows, and discussions about new tariffs are creating further uncertainty,” Thyssenkrupp board member Volkmar Dinstuhl, who is in charge of the company’s automotive business, said.
The company said measures would also include cutting investments, in line with lower expected sales volumes.
Carmakers and suppliers across the continent have announced job cuts due to softening demand, high costs, increasing pressure and a slower-than-expected transition to electric vehicles.
“We cannot escape these market pressures, although we remain convinced of the future viability of our technologically leading component businesses,” Dinstuhl said.
($1 = 0.9264 euros)
(Reporting by Christoph Steitz; Editing by Madeline Chambers)
