German industry is experiencing difficult times: after announcing layoffs at companies such as Bosch, Bayer, Continental and Volkswagen, steel giant Thyssenkrupp is now planning to cut jobs. The company wants to eliminate up to 11,000 positions. According to economists’ estimates, the situation will worsen next year as well, when the number of unemployed could increase by a total of 80,000. This means that Germany will lose around 7,000 jobs every month. He informs about it today Bild.
“As long as business conditions are this bad – and that won’t change until the 2025 general election – layoffs will continue,” said analyst Robert Halver of Baader Bank. According to him, energy-intensive sectors of industry are most at risk.
Problems like in Germany
Marian Kechlibar
COMMENT
Early elections in Germany will take place in February next year. Halver warns that even in the first months after the elections, German politicians will not come with any major changes that would reverse the situation in the industry for the better.
According to estimates, up to 15,000 people could lose their jobs before the election. Stefan Wolf, head of the trade union in the Gesamtmetall metal industry, warns against this. He estimates that 300,000 jobs will disappear in the industry by 2030.
German solidarity in practice
Little Margaret
COMMENT
One of the most prestigious German economic think-tanks, the Institute for Economic Research (Ifo), which publishes regular reports on the state of the economy, also commented on the situation in German industry. The president of this institution, Clemens Fuest, drew attention to the inconsistency of decarbonization with the maintenance of energy-intensive industry in Germany. “The Thyssenkrupp case shows that it has not yet been possible to combine environmental goals with the needs of industry,” said Fuest.
Křetínský joined the Thyssenkrupp steelworks this year
In the division called Thyssenkrupp Steel Europe (TKSE), the investment group EP Corporate Group (EPCG) of the Czech businessman Daniel Křetínský acquired a 20 percent share this year. Currently, EPCG is negotiating to increase the stake to 50 percent.
“Urgent measures need to be taken to improve Thyssenkrupp Steel’s productivity and operational efficiency and to achieve competitive cost levels,” the firm said. The division’s new strategy envisages a reduction in annual production capacity to 8.7 to 9.0 million tons from the current 11.5 million tons.
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BET IN VOLKSWAGEN
The Thyssenkrupp Group is Germany’s largest steel producer. Steel production is very energy-intensive, so the steel division is troubled by high energy prices. However, Krétínský is profiting from expensive energies, on the contrary. The company Thyssenkrupp said in May that it expects access to cheaper electricity from Křetínský.
Another giant, Bosch, also announced layoffs, which expects to eliminate up to 7,000 positions, most of them related to the automotive industry. In it, the biggest problems are reported by the Volkswagen concern, which has been negotiating with unions for several weeks, who fear the closing of factories in Germany.
The German government, through Labor Minister Hubertus Heil, said that it is preparing other measures in addition to investments, such as reducing electricity charges for industry.
Money in one box! Gift box with Expeditions as a beautiful Christmas present
Echo24, 18 November 2024
EXPEDITIONS OF JIRÍ PENÁS
(The stage is set for a comedy commentary, with a dark and satirical tone, akin to Jimmy Carr, Rowan Atkinson, Ricky Gervais, and Lee Evans. The presenter, with a sarcastic grin, begins to read the article in a mocking tone.)
Presenter: “Ah, the joys of the German economy, folks! (chuckles) It’s like they say, ‘Luft ist raus’ – the air has gone out of the balloon. Or in this case, the jobs have gone out of Germany! (laughter)
“Thyssenkrupp, the steel giant, is planning to cut a whopping 11,000 jobs. Now, I know what you’re thinking, ‘That’s a lot of sausages gone… I mean, sold. Wait, no, laid off!’ (laughter) Sorry, I’m just trying to make light of a bad situation.
“And it’s not just Thyssenkrupp; Bosch is also looking to axe up to 7,000 jobs. That’s like, well, a lot of… more sausages. (laughter) You see, the problem is, the German industry is like a wee little wobbly table at Oktoberfest – it’s struggling to stay upright. (chuckles)
“Now, the analysts are saying that things won’t get better until the 2025 election. Ah, the magical world of politics, always promising us a better tomorrow… until the next election, of course! (sarcastic tone) Yeah, good luck with that.
“But don’t worry, folk, the trade unions are fighting for those jobs. Stefan Wolf, head of the trade union in the metal industry, is warning that up to 300,000 jobs could disappear by 2030. That’s a lot of currywurst-scented unemployment! (laughter) Sorry, I’ll stop with the sausages now.
“Oh, and did I mention that the Czech businessman Daniel Křetínský is making a profit from the energy crisis? Ah, those clever businessmen, always finding ways to turn a crisis into a favorable brand of salad dressing. (chuckles)
“And don’t worry about Volkswagen, they’re negotiating with the unions. It’s just a little friendly chat about closing factories and whatnot. No need to panic; it’s just business as usual. (sarcastic tone)
“All jokes aside, folks, the German economy is facing a very real crisis, and people’s livelihoods are at stake. But hey, on the bright side, if they’re looking for a Christmas present, they can always buy that Gift Box with Expeditions by Jiří Penás. That’s what I call ‘ Geschenk des Politigers’. (German for ‘gift of politicians’) Ah, those politicos always thinking ahead of the packaging… I mean, the problem!” (winks)
(The presenter takes a deep breath and wraps up the article with a raised eyebrow)
Presenter: “Well, that’s all folks! Another lovely day in the world of economics. Let’s just hope they save the German economy from collapse. Or, as the Germans would say, ‘Mach’s gut!’ (Good luck!) until next time.”
Germany’s Industrial Woes Deepen: 11,000 Jobs at Risk at Thyssenkrupp
Germany’s industry is facing a dire situation, with several major companies announcing significant layoffs in recent months. The latest to join the list is steel giant Thyssenkrupp, which plans to eliminate up to 11,000 positions. According to economists, the situation is expected to worsen in the coming year, with an estimated 80,000 jobs at risk, amounting to around 7,000 layoffs per month. This grim forecast was reported by Bild, a prominent German publication.
Analysts Warn of Prolonged Industrial Woes
Robert Halver, an analyst at Baader Bank, attributes the industry’s struggles to adverse business conditions, which he believes will persist until the 2025 general election. "As long as business conditions are this bad – and that won’t change until the 2025 general election – layoffs will continue," Halver warned. He specifically pointed to energy-intensive sectors as being most vulnerable.
Early Elections Offer Little Hope for Immediate Relief
Early elections in Germany are scheduled to take place in February next year. However, analysts caution that even in the aftermath of the elections, German politicians are unlikely to introduce significant changes that would reverse the industry’s fortunes. Up to 15,000 jobs could be lost before the election, according to estimates. Stefan Wolf, head of the Gesamtmetall metal industry trade union, warned of an alarming 300,000 job losses in the industry by 2030.
Ifo Institute Highlights Inconsistency in Decarbonization Efforts
The prestigious Institute for Economic Research (Ifo) has weighed in on the situation, with President Clemens Fuest highlighting the inconsistency between Germany’s decarbonization goals and the needs of its energy-intensive industries. "The Thyssenkrupp case shows that it has not yet been possible to combine environmental goals with the needs of industry," Fuest noted.
Křetínský’s Investment Group Seeks to Increase Stake in Thyssenkrupp
Daniel Křetínský’s investment group, EP Corporate Group (EPCG), acquired a 20% stake in Thyssenkrupp Steel Europe (TKSE) earlier this year and is currently negotiating to increase its stake to 50%. The company has acknowledged the need for urgent measures to boost productivity and operational efficiency in the division, with plans to reduce annual production capacity from 11.5 million tons to 8.7-9.0 million tons.
Volkswagen Unions Set to Launch Warning Strikes
Volkswagen unions are expected to initiate warning strikes from December, as the company grapples with its own set of challenges, including the renegotiation of worker contracts. The company has announced plans to eliminate up to 7,000 positions, primarily in the automotive sector. Labor Minister Hubertus Heil has pledged that the German government will introduce measures to support the industry, including reducing electricity charges.
