The Metallurgical Company ThyssenkrupP will hold mass dismissals in Europe

The largest European steel company Thyssenkrupp AG, based in Germany, announced today about the optimization of the management structure and start of the new economic policy of the concern that includes a reduction in costs of 250 million euros and a reduction in 3,000 jobs. This is stated in the company's press release.

According to the report, the losses of the company in the first half of the current financial year amounted to more than 44 million euros, and sales of metal products fell by 9 percent to 17 billion 900 million euros. Thyssenkrupp expects to "increase its competitiveness in difficult market conditions." “Despite the weak market conditions, we are going the right way to achieving our goals,” said the new head of the concern, Heinrich Haisinger.

"We have reached an important milestone in our strategic development program. Our measures to increase income and cash flows are introduced. Negotiations on the sale of two steel plants in America also go according to plan. We are still concentrated on the conclusion of transactions as soon as possible," says Hayzinger.

Thyssenkrupp does not see an improvement in market conditions in 2013. Although the level of sales in the second half of this year will be slightly higher than in the first, in total it will still be lower than last year at 40 billion euros. The adjusted profit indicator before the EBIT tax in 2013 is expected about 1 billion euros.

Recall that this week the largest metallurgical company of Arselormital, as well as the largest Japanese metallurgical companies, Nippon Steel & Sumitomo Metal Corp, JFE Holdings Inc and Kobe Steel LTD.