Thyssenkrupp Steel Europe said it had reached an agreement with union IG Metall to cut or outsource about 11,000 jobs, representing around 40% of its workforce. Under the plan, the company will also reduce its production capacity to a shipping level of 8.7 million to 9 million tons, down from the current 11.5 million tons.

The measures form part of a restructuring agreement that will be implemented immediately. The agreement is based on an industrial concept presented last year, which IG Metall had previously said it would oppose with fierce resistance.

According to the company, financing for the agreement set to remain in place until September 30, 2030, has been secured. Thyssenkrupp Steel Europe added that all parties have agreed to keep further details confidential.