Voestalpine Announces 340 Job Cuts in Styria Amidst Tariff and Cost Pressures
Voestalpine, a leading steel company, is reducing its workforce in Styria, Austria, by 340 positions due to ongoing US tariffs, high energy costs, and challenging labour market conditions. The cuts, encompassing both permanent and temporary roles, were announced by CEO Herbert Eibensteiner on Wednesday during the presentation of the company’s half-year results.
The restructuring will impact the Kindberg and Mürzzuschlag locations, with 280 permanent positions and approximately 60 temporary positions eliminated. Despite the reductions, Voestalpine aims to secure the future of its Mürzzuschlag site by focusing on specialized products, preserving roughly three-quarters of the jobs at the Böhler Bleche plant, which currently employs around 450 people.
“This means for voestalpine Bleche in Mürzzuschlag that the location will remain, but we are focusing on special products and can secure three-quarters of the jobs,” the CEO stated.
At the voestalpine Tubulars plant in kindberg, which employs approximately 1,150 workers, operations will be scaled back from three to two shifts starting in January. This change will affect around 160 employees and 60 temporary workers.The Kindberg facility produces seamless steel tubes for a diverse range of industries, including automotive and oil & gas.
A social plan is currently under progress in collaboration with the works council to mitigate the impact on affected employees. Voestalpine intends to offer opportunities for relocation to other sites where personnel needs exist, leveraging a decades-old steel foundation to provide job search assistance and professional development resources.
the company acknowledged an “urgent need for action” at its Mürzzuschlag location as early as September,citing a sharp decline in sales volumes,notably in tool steel. Voestalpine does not anticipate any improvement in the economic climate in the near future and will continue implementing ongoing reorganization measures across its operations,including sites in Germany and within its High Performance Metals Division.
“We are consolidating plants in Germany and adapting to the low demand,” Eibensteiner explained. The Birkenfeld,Germany location will be closed on December 1st,and the company faces significant challenges at multiple Styrian sites.
The impact of US tariffs is a major contributing factor to the company’s difficulties. According to a company release, “the significant burdens from US tariffs in the main sales market USA as well as the persistently low oil prices have led to a noticeable decline in sales volumes” at voestalpine tubulars. At Böhler Bleche in Mürzzuschlag, a strategic project is underway to adapt processes and maintain competitiveness despite high costs and unfavorable economic conditions.
Group-wide, Voestalpine has already reduced its workforce by 4.1 percent, from 51,733 to 49,614 employees (full-time equivalents) as of the end of September. While further reductions are possible, the CEO indicated that the most significant impact will be felt at the Styrian locations. The company employs approximately 9,300 people in Styria, generating 5.1 billion euros in revenue during the 2024/25 financial year.
Notably,the company headquarters in linz is expected to avoid significant reduction measures,even though hiring restrictions will be implemented.
Despite a 5.6 percent decrease in sales revenue – from 8 billion euros to 7.6 billion euros – Voestalpine reported an 8.6 percent increase in profit after taxes, reaching 198.6 million euros for the first six months of the 2025/26 financial year. This positive result was attributed to strong performance in areas such as railway infrastructure, aviation, and storage technology, despite the headwinds caused by the 50 percent US tariffs.
The company’s EBITDA outlook for the fiscal year 2025/26 remains stable, projected between 1.4 and 1.55 billion euros, with a reported 722.4 million euros (a 0.6 percent increase) for the first half of the year.
This article has been automatically translated, read the original article here.
