Wave of Resignations Hits Thyssenkrupp’s Steel Division
Thyssenkrupp’s steel division is experiencing a significant leadership shakeup, with CEO Bernhard Osburg and chair Sigmar Gabriel stepping down, along with two other senior executives and three members of the supervisory board. The wave of resignations follows a contentious restructuring battle sparked by a recent takeover bid by Czech billionaire Daniel Křetínský.
Takeover Sparks Internal Conflicts
The resignations come in the wake of Křetínský’s acquisition of a 20% stake in Thyssenkrupp’s steel unit, with an option to purchase an additional 30%. As the steel division prepares for potential independence, disagreements have emerged over the financial support the parent company should provide to the newly formed entity, with fears of inadequate funding leading to possible insolvency.
Concerns Over Financial Stability and Future Viability
Union leaders have expressed serious concerns about the division’s financial future. Ali Güzel, chairman of the Works Council at the ThyssenKrupp Duisburg/Beeckerwerth site, warned that the risk of insolvency is high if the steel division does not receive sufficient financial backing. Meanwhile, Miguel Ángel López Borrego, CEO of the parent company, seems hesitant to invest heavily in the struggling steel unit, which faces intense competition from cheaper Asian manufacturers and the pressure of rising energy costs in Europe.
Restructuring Challenges and Worker Anxiety
The restructuring process has been further complicated by lower demand from European carmakers and the need for substantial investments to meet climate regulations. As negotiations continue, job cuts are expected, adding to the anxiety of the steel division’s 27,000 employees. Union leader Knut Giesler criticized Thyssenkrupp’s management for creating “unprecedented chaos” and undermining previous progress made in restructuring efforts.
Interim Leadership Steps In Amid Uncertainty
In response to the leadership turmoil, Dennis Grimm, the current chief technology officer, has been appointed as interim CEO of the steel unit. Outgoing chair Sigmar Gabriel highlighted a “serious breach of trust” by the parent company in a public letter, reflecting the deep divisions within Thyssenkrupp’s management. As the steel division grapples with its uncertain future, the company faces mounting pressure to resolve its internal conflicts and restore stability.
SOURCE: Ref Image from Daily Sabah
Whether writing about complex technical topics or breaking news stories, my writing is always clear, concise, and engaging. My dedication to my craft and passion for storytelling have earned me a reputation as a highly respected article writer.