ThyssenKrupp job cuts

German heavy engineering and steel heavyweight ThyssenKrupp reported Wednesday it would cut 3,000 administrative jobs worldwide to make the firm more competitive again.

The layoff program codenamed "Act" would affect 1,500 employees in Germany, the company said. The move came after the more than 2,000 job cuts that ThyssenKrupp announced in European steel operations earlier this year.

The Essen-based group posted a net loss of 656 million euros ($846.5 million) in the second quarter, with the company's fiscal beginning in October. In the same period a year earlier, the firm already logged a loss of 587 million euros.

Overseas troubles

Q2 losses were also the result of additional write-downs to the tune of 683 million euros on new steel mills in Brazil and the US, with both operations now up for sale.

ThyssenKrupp had invested about 12 billion euros in the overseas mills, but auditors now valued them at just 3.4 billion euros after foreign currency changes and rising inflation in Brazil.

Despite the losses, CEO Heinrich Hiesinger provided a positive outlook. "Our measures to improve earnings and cash flow are taking effect," he commented. "Despite the persistently difficult economic environment, we're on track to meet our operating targets for the full year."

The announcement of more job cuts send ThyssenKrupp shares up by 4 percent in early trading at the Frankfurt Stock Exchange.

hg/   (dpa, AFP)