Swiss Steel announces restructuring and cuts in Germany

Context

In brief

• Swiss Steel restructures its plants in Germany
• Cuts have been announced, but without figures on jobs
• The aim is operating profitability from 2028
• Steeltec: 17 million in support from the canton of Lucerne

Key facts

• Group and headquarters → Swiss Steel, Lucerne
• Workforce → from 13'000 to 6'500 employees
• Loss → 311 million euros, compared with 197 in 2024
• Volume of Swiss exports exempt from duties → reduced by 35%
• Aim → operating profitability from 2028

Swiss Steel, a steel multinational headquartered in Lucerne, has announced a new restructuring following substantial losses and a significant decline in demand. The measure concerns its plants in Germany and will entail cuts in the country, CEO Frank Koch said.

In an interview published today by SonntagsZeitung, Koch did not indicate how many jobs would be eliminated. He did, however, explain that the plan aims to significantly reduce the group’s dependence on the automotive sector.

The group's plan

The project involves reorganizing the production plants so that they can once again generate operating profits in a significantly downsized market. The next phase identified by Koch is balance-sheet recovery.

«Our plan is to return to operating profitability from 2028».

From that point on, the group will be significantly smaller and more focused, the executive emphasized. The reorganization therefore combines production downsizing, reduced dependence on the automotive sector and a return to operating profits.

A crisis lasting years

Swiss Steel has been facing a deep crisis for several years and has already halved its workforce, from 13'000 to 6'500 employees. Last year, the company posted a loss of 311 million euros, compared with 197 million in 2024, SonntagsZeitung reports.

The European Union’s new protectionist measures against steel imports are also weighing on the business. The volume of Swiss exports exempt from duties has been reduced by 35%. The Lucerne site is the hardest hit. Swiss Steel is in contact with the EU and the Federal Council; Koch said there are good reasons to hope for a solution.

The company left the Swiss stock exchange SIX Swiss Exchange in 2025, a decision prompted by the extensive restructurings and reorganizations of previous years. In June, the canton of Lucerne approved financial support of 17 million francs for Steeltec, a Swiss Steel subsidiary based in Emmenbrücke. The company employs 600 people, and the cantonal contribution is necessary so that the Confederation can in turn contribute an equivalent amount.

Operational details

The Swiss perspective on the restructuring

The news has a specific Swiss angle: the source separates the cuts announced in Germany from the situation at the Steeltec subsidiary in Emmenbrücke. For those who work in the sector or live in the canton of Lucerne, this distinction prevents turning the announcement into an automatic estimate of local redundancies. The number of jobs eliminated has not been disclosed, and the source does not announce cuts at Steeltec.

Four elements not to confuse

The support for Steeltec has a precise structure. The canton of Lucerne has approved 17 million francs; the source specifies that this contribution is necessary for the Confederation to provide an equivalent amount. The source refers to support for Steeltec, does not describe direct payments to employees, and does not indicate any additional conditions, disbursement deadlines, or effects on individual jobs.

The second point concerns trade. The 35% reduction in the volume of Swiss duty-free exports is not presented as a measure limited to Germany: the Lucerne site is identified as the one most affected. For this reason, Swiss Steel's contacts with the European Union and the Federal Council are the channel through which developments may come, but the source does not yet communicate a solution.

The departure from SIX Swiss Exchange, which took place in 2025, should also be kept separate from the restructuring announced now. Koch linked it to the extensive restructurings and reorganizations of previous years. Those who need to navigate the job market can consult the annunci di lavoro, without using the search for new opportunities as proof of already quantified redundancies.

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Key points

How to follow the dossier in Switzerland

For anyone employed, resident, or operating in the canton of Lucerne, the most prudent way to follow the matter is to start from the available data and not attribute effects to the plan that the source does not describe. Neither the number of redundancies in Germany nor an individual procedure for workers is specified. The concrete action is therefore to check updates on the site, employment, support, and timing.

Four practical checks

1. Distinguish the location. The restructuring with cuts concerns the plants in Germany. Steeltec, on the other hand, is Swiss Steel's subsidiary based in Emmenbrücke and has 600 employees. The figure for the cuts must not automatically be applied to the Swiss subsidiary.

2. Separate the figures. The 13'000 and 6'500 employees describe the downsizing that has already taken place in the group's workforce. The 600 indicate Steeltec's staff. The 17 million francs concern cantonal support. None of these figures indicates how many new jobs will be eliminated.

3. Set the timetable. 2028 is the stated horizon for returning to operating profitability. In June, support from the canton of Lucerne was approved, while the exit from SIX Swiss Exchange dates back to 2025. The source provides no other deadlines for the cuts or for restructuring the balance sheet.

4. Follow the institutional channel. Swiss Steel is in contact with the EU and the Federal Council. At the cantonal level, the contribution to Steeltec is indicated as necessary so that the Confederation can pay an equivalent sum. The hope of a solution is reported, but its outcome has not been announced.

This sequence avoids two opposite errors: considering all 600 jobs in Emmenbrücke to be at risk or interpreting the 17 million as personal compensation. The source supports neither interpretation. Anyone who needs to assess career alternatives can look at the aziende che assumono, keeping the search for opportunities separate from the actual scale of the redundancies.

To calculate your monthly net income, use the calcolatore stipendio.

Source: tio.ch