Thyssenkrupp to cut 800 jobs in the automotive business

German conglomerate Thyssenkrupp will slash 800 automotive system engineering jobs, adding that auto demand could take up to three years to recover.

"We don't expect output figures in the auto industry to return to pre-crisis levels for at least two to three years," Ingo Steinkrueger, head of Thyssenkrupp System Engineering, said in a statement.

In May, Thyssenkrupp had said that System Engineering would be broken up, with two subunits - car body solutions and lightweight solutions - becoming part of the Automotive Technology division.

The remaining parts - battery solutions and powertrain solutions - are being shifted to the Multi Tracks unit, which accounted for 6 billion euros ($7 billion) of sales, 20,000 jobs, and 400 million euros of negative cash flow last year.

Thyssenkrupp's critical financial situation has also given rise to speculation that it might seek state participation, but Andreas Pinkwart, economy minister of Thyssenkrupp's home state North Rhine-Westphalia, said no request had yet been made.

The job losses come on account of the impact of the COVID-19 pandemic which has added to pressures on Thyssenkrupp, which is striving to turn around its loss-making business units after selling its elevator division, which was by far its most profitable asset, to a private equity consortium earlier this year. The firm’s shares are trading at their lowest since mid-May when the pandemic severely impacted the stocks of industrial companies globally.

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