On Thursday, ailing German multinational conglomerate Thyssenkrupp AG said, it plans on cutting 5,000 jobs in order to ease the impact of the coronavirus, which emerged from Wuhan, China, from its businesses.
“We’re not yet where we need to be. The next steps could be more painful than the previous ones. But we will have to take them,” said Martina Merz Thyssenkrupp AG’s CEO in a statement.
The news comes on top of 2019’s job cuts; the conglomerate had announced a reduction of up to 6,000 jobs last year; if that were to be added to the recent announcement, the total number of planned layoffs comes to 11,000. One third of this planned job cuts have already been realised, said Thyssenkrupp.
The remaining 7,400 positions, equivalent to 7% of its current workforce, will be cut over the next three years.
In a statement Thyssenkrupp said, it expects its adjusted operating loss to narrow to a mid-triple digit million-euro range in the fiscal year to September 2021, compared with a loss of 1.6 billion euros ($1.9 billion) in the previous fiscal year. The company’s shares, which have declined 59% this year, were indicated to open 6.2% lower in early trade, with traders pointing to the weak outlook.