Thyssenkrupp nucera freezes employment as the second-quarter losses widen

Thyssenkrupp Nucera announced on Tuesday that it has frozen hiring in countries with high costs as part of wider saving measures. This comes after the company's second-quarter losses widened because of higher costs of hydrogen projects and termination of a U.S. Pilot Project.

During a conference, Finance Chief?Stefan Hahn stated that cost-saving measures would?deliver around 25 million euro ($29 million) per year in fiscal 2026/27 compared to the previous year. This includes the hiring freeze as well as a'reduced work hours' in Germany, which is equivalent to about 40 full-time positions.

Thyssenkrupp nucera also targets an additional 15 million euro in savings per year through measures like shifting functions to countries with lower costs and streamlining the research and development activities and hydrogen products.

Hahn stated that the program is "well underway" and will not only help to mitigate the soft market, but also improve our competitiveness and structural efficiency in the future.

The company reported a?net loss?of?64?million euro ($75 million) in the second quarter. This was below an LSEG average estimate of a loss of 32?million euro. The company also announced that its free cash flow had improved to 9 million euros from a loss of?5 millions euros in the previous year.

(source: Reuters)