Thyssenkrupp to cut 3,000 jobs at steel unit by 2026

The German elevator-to-car parts conglomerate Thyssenkrupp will cut 3,000 jobs at its steel unit by 2026 as part of a wage deal it struck with powerful labour union IG Metall, it said on Wednesday.

Jobs will be cut in a socially responsible way, with no forced layoffs until March 31, 2026, Thyssenkrupp said.

The deal also has an immediate "corona crisis package" that includes shortened working hours, which will be implemented over the coming weeks, the company said.

As a result of the pandemic, Thyssenkrupp said it will make production adjustments in its steel business.

"We will have to go into short-time work at many locations in the coming weeks. This will initially affect production-related areas," Oliver Burkhard, executive board member said.

The package also requires Thyssenkrupp Steel Europe's operations to increase short-time work pay to 80%, according to the statement.

The company on Monday scrapped its 2019-2020 profit outlook, blaming the economic downturn triggered by the fast-spreading coronavirus.

The agreement with the labour union applies to all of Thyssenkrupp's steel locations in Germany, it added.