By Pierre Bertrand

Thyssenkrupp said it would cut around 1,800 jobs as part of an effort to reduce costs at its automotive technology business, which posted a slump in sales and orders for the final three months of last year.

The German industrial group said its package of measures aimed at cutting more than 150 million euros ($161.8 million) would also include a temporary hiring freeze at the unit, which employed around 31,600 workers as of the end of September.

The move comes amid a weak outlook for the automotive industry, with production volumes lagging behind historical lows, Automotive Technology Chief Executive Volkmar Dinstuhl said Thursday.

"As a result, numerous original equipment manufacturers and suppliers have announced extensive restructuring measures in recent months. We cannot escape these market pressures," Dinstuhl said, adding that discussions about new tariffs were creating added uncertainty.

Other measures being taken by the company include fewer investments and efforts to optimize its inventory management, Thyssenkrupp said.

The measures are the latest the German industrial company is embarking on as it strives to redress its performance.

The company said in November it was confronted with significantly weaker demand from key customer industries, including the automotive sector. It had already planned cutting around 400 jobs in Germany at its automotive body solutions unit.

To underscore the scale of the challenges, the company said late in the same month that it planned to shed 11,000 positions at its steel business in the form of direct cuts and through outsourcing and business sales.

The company employs 98,120 people across the whole of the group, according to its latest annual report.

In February, Thyssenkrupp cut its sales expectations for fiscal 2025 after lower prices and weaker demand affecting its automotive technology, materials services and European steel businesses cut into its first-quarter revenue. Thyssenkrupp expects a sales decline of 0% to 3%, having previously assumed 0% to 3% growth.

Thyssenkrupp Automotive Technology recorded a 12% decline in order intake and a 10% drop in sales in the first quarter of fiscal 2025. Automotive Technology adjusted earnings before interest and taxes fell by 75% to 12 million euros, the company said.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

March 06, 2025 09:42 ET (14:42 GMT)

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