Before his departure from Thyssenkrupp, Sigmar Gabriel targeted the company’s CEO, Miguel Lopez, accusing him of being impossible to work with. Gabriel’s resignation is not the only one.
The struggling industrial conglomerate Thyssenkrupp is facing a major crisis due to disputes over the future of its steel division. Sigmar Gabriel, Chairman of the Supervisory Board of the steel subsidiary, announced his resignation on Thursday. Gabriel stated that a trusting collaboration with CEO Miguel Lopez and Supervisory Board Chairman Siegfried Russwurm was no longer possible.
Three other members of the Supervisory Board also planned to step down. Additionally, Steel CEO Bernhard Osburg and other members of the steel division’s management board would immediately resign from their positions.
Lopez had publicly criticized Osburg sharply in the dispute over the future of the steel division, insisting that Osburg must finally present a long-term sustainable business plan without any sugarcoating. Gabriel stated that it was apparently Lopez’s goal to push the board into resigning. “This, despite the fact that the board of Thyssenkrupp Steel Europe AG has diligently represented the interests of the steel company and successfully defended itself against what it considered unacceptable influences on its work,” Gabriel explained.
The resigned steel chief, Bernhard Osburg, expressed regret over the developments in an internal letter to employees. “We were not finished with our work and had very concrete and viable ideas on how we could have continued the successful and measurable path of the past few years and led the company into an economically independent future,” Osburg wrote in a “Personal farewell message” obtained by the Reuters news agency on Friday. Osburg and two other board members of the steel division resigned on Thursday following the dispute with the company’s leadership over the future of the business.
The events of the past few days have been a significant burden for everyone, Osburg emphasized. “We will no longer be allowed to shape the future of this company.” He called on employees to support the remaining team. “In these very difficult times and given the magnitude of the tasks, what is needed above all else is trust, respect, and the cohesion of all involved to overcome the major challenges.”
IG Metall: “Unprecedented chaos”
When asked if Lopez should be dismissed given the chaos, Gabriel responded, “How could Siegfried Russwurm fire the person he himself hired?” Lopez plans to reduce production capacity due to weak demand and spin off the steel business into a 50:50 joint venture with the energy holding of Czech billionaire Daniel Kretinsky. Employee representatives fear the loss of thousands of jobs. Lopez is also at odds with Steel CEO Osburg over the size of the financial support that the parent company should provide to the subsidiary as it moves towards independence.
IG Metall targeted CEO Lopez in light of the debacle. “The management of Thyssenkrupp AG has led this company into an unprecedented chaos,” criticized Knut Giesler, head of the NRW district. The employee representatives are aware of their responsibility and have therefore stated from the beginning that they would support a restructuring of the steel sector. “But this requires that there are no layoffs due to operational reasons, no plant closures, and that a secure financial perspective for the future is guaranteed.”
The ongoing crisis at Thyssenkrupp, marked by the resignation of key executives, underscores deep-seated tensions within the company over the future of its steel division. The sharp criticism from both departing leaders and labor representatives highlights a significant leadership disconnect, particularly regarding the handling of strategic decisions and employee welfare. As the company navigates this turmoil, the ability of the remaining management to restore trust and cohesion will be crucial in determining whether Thyssenkrupp can stabilize and successfully restructure its steel operations.
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