View of the Thyssenkrupp steel mill. (picture alliance/Rolf Vennenbernd/dpa/archive)
German conglomerate Thyssenkrupp on Tuesday announced the details of its largest restructuring in decades, saying that it planned to slim down the management teams of the two spin-off entities and significantly reduce operating costs.
The conglomerate is to split its operations into Thyssenkrupp Industrials - made up of the elevators, car parts and plant engineering units - and Thyssenkrupp Materials, made up of materials trading and shipbuilding.
The company said Tuesday that it would have no more than three board members for each unit and that operating costs would be reduced from 380 million euros (429 million dollars) to below 300 million euros by the 2020-2021 financial year.
Shareholders are expected to vote on the split at next year's general meeting, which is scheduled to take place on January. In May, the company plans to announce details of the restructured entities' exact structures, brands and strategies.
The management of Thyssenkrupp has come under fire in recent months over what critics say is a lack of concrete details over how the breakup will lead to better results.
Also on Tuesday, Thyssenkrupp announced a dip in its first-quarter results, saying that its earnings before interest and taxes for the first three months of the year had dropped by almost a third to 168 million euros.
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