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Thyssenkrupp (OTCPK:TYEKF) (OTCPK:TKAMY) said Thursday its steel unit head Bernhard Osburg will leave the company along with several supervisory board members and other top managers, the result of a deepening conflict with the parent company over the future direction of the business.
The moves follow a weeks-long battle between executives and worker representatives over efforts to reduce steelmaking capacity and restructure the business.
Thyssenkrupp’s (OTCPK:TYEKF) (OTCPK:TKAMY) steel unit has dragged down the broader company’s earnings for years as European steelmakers suffered from weak demand and high investment requirements to lower emissions.
The company said in April it planned to reduce steelmaking capacity by ~20%, with substantial cuts of the unit’s 26K jobs.
In a meeting earlier this month, the supervisory board failed to reach an agreement on broader restructuring plans, as labor members who make up half the board opposed proposals including more capacity reductions.
Supervisory board head Sigmar Gabriel said Thursday the parent company undermined Osburg in a “serious breach of trust,” and that the parent company chairman tried to undermine the steel unit’s executive board, damaging its ability to act.
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