Swiss Steel Group, a leading global steel manufacturer, has announced comprehensive restructuring measures affecting its operations across Europe. The company plans to reduce its workforce by approximately 800 full-time positions, responding to persistent weak demand in the European manufacturing sector and challenging market conditions.
The restructuring initiative, part of the company's SSG 2025 strategy, will primarily impact production facilities in Switzerland, Germany, and France. At the Emmenbrücke plant in Switzerland, 130 positions out of 750 will be eliminated, affecting both production and administrative departments. The company anticipates that natural attrition will only account for a portion of the reductions, necessitating approximately 80 direct terminations.
In Germany, Deutsche Edelstahlwerke will implement a 15% reduction in weekly contractual working hours as part of the capacity adjustment plan. The company's total workforce reduction includes 530 direct job cuts and 270 full-time equivalent positions adjusted through reduced working hours. These measures are designed to optimize operational efficiency and ensure the long-term sustainability of the group's production sites.
The steel manufacturer's decision comes amid challenging market conditions, with European manufacturing industry showing minimal growth prospects. The company's key customers have reported modest growth outlooks, further necessitating these structural changes. The restructuring program aims to reduce the total workforce to below 7,000 employees by the first half of 2025.
Frank Koch, CEO of Swiss Steel Group, emphasizes that while these cuts are difficult, they are essential for the company's future viability. The restructuring follows previous cost-reduction initiatives that have already yielded significant savings. The company's management has initiated consultation procedures in affected locations, particularly in Switzerland, where discussions with employee representatives are ongoing.
The reorganization extends beyond workforce reduction to include a comprehensive realignment of the entire sales organization. This strategic move aims to enhance market responsiveness and improve customer service capabilities while streamlining operational costs. The company plans to implement these changes promptly to ensure full effectiveness by 2025.
The restructuring program represents a significant shift in Swiss Steel Group's operational strategy, reflecting broader challenges in the global steel industry. Market analysts note that these measures align with industry-wide trends as steel manufacturers adapt to changing market dynamics and increased competition. The company maintains that these adjustments are crucial for maintaining competitiveness and ensuring long-term market presence.
