Germany’s Salzgitter AG (SZG.XE) said Wednesday it will cut more than 1,500 jobs in response to the crisis in Europe’s steel industry, which prompted a profit warning from the company last week.
“Severe competition resulting from the ongoing capacity underutilization of numerous producers in southern Europe pushed the selling prices achievable for most rolled steel products below the manufacturing costs,” Germany’s second-largest steelmaker by output said.
Like other steelmakers, including Germany’s ThyssenKrupp AG (TKA.XE) and Kloeckner & Co SE (KCO.XE), Salzgitter has been hit by limp demand in Europe. It had also cut its outlook in May, saying the prospect of markets stabilizing had deteriorated.
The job cuts, representing almost 6% of Salzgitter’s workforce, are part of a restructuring program aimed at improving profit by more than 200 million euros ($266 million) annually. More than half of that amount will stem from the areas of logistics, procurement and data processing, as well as the jobs downsizing, it said.
Chosen excerpts by Job Market Monitor. Read the whole story at
via Salzgitter to Cut 1,500 Jobs As Industry Crisis Takes Toll – WSJ.com.
Job Market Monitor 
Discussion
No comments yet.