Finnish stainless steel company Outokumpu recently acquired stainless steel company Inoxum from competitor ThyssenKrupp. Now it has announced plans to cut 2,000 jobs within the next four years, 500 more than previously announced.
Outokumpu aspires to become the new market leader in the sector with around 15,000 employees and is currently seeking to reduce overcapacity and cut costs.
Jobs will be cut in an attempt not to breach European competition law: The new group has agreed to sell a production plant in Terni, Italy, as well as parts of the current Inoxum sales network. Moreover, the company had previously announced its plans to cut 850 jobs in Germany by 2016. However, ThyssenKrupp has agreed to reemploy 600 workers affected by this job reduction.
According to a company senior official, additional redundancies might be made, in line with developments in the company’s economic situation but are not planned at this stage. For previous restructuring at Outokumpu, please see here.