Swiss Steel plans German job cuts and balance sheet overhaul after €311m loss

Job cuts and German restructuring

Lucerne-based steelmaker Swiss Steel is initiating a new restructuring round targeting its manufacturing plants in Germany. Chief Executive Officer Frank Koch confirmed the planned layoffs in an interview with the SonntagsZeitung newspaper, declining to specify the exact number of positions to be eliminated. The group has already halved its total workforce in recent years, reducing headcount from 13,000 to 6,500 employees. Koch explained that scaling back operations in Germany is designed to reduce the company's reliance on the automotive sector, which has suffered sustained downturns. The restructuring seeks to resize production facilities so they can generate operational profits within a severely contracted market.

We have a clear plan for the restructuring of the Swiss Steel Group.

Financial losses and capital restructuring

The restructuring follows severe financial deterioration revealed in the company's unpublished 2025 annual report. Swiss Steel recorded a net loss of €311 million in 2025, widening from a €197 million deficit in 2024. Revenue dropped by approximately 45% between 2022 and 2025, falling from €4.051 billion to €2.236 billion. Consolidated equity fell to €25 million, while company debt stands near €1 billion. Independent auditors cited in the report noted material uncertainty that raises significant doubts about the group's ability to continue as a going concern. Main shareholder Martin Haefner, the owner of AMAG who has invested roughly 1.5 billion into Swiss Steel, faces further capital commitments alongside creditor banks that are expected to write off portions of their loans. The move follows an earlier €300 million capital increase in 2024 that was financed almost entirely by Haefner.

Trade barriers and state support

External market pressures have compounded operational difficulties across the group's European footprint. New European Union protection measures on steel imports reduced Switzerland's tariff-free export quota by approximately 35%, with the Lucerne manufacturing hub bearing the heaviest impact. Swiss Steel remains in discussions with both the European Union and the Swiss Federal Council regarding import terms. Koch expressed reasoned confidence in reaching a negotiated arrangement. Domestic public funding has also been deployed to maintain regional industrial capacity. In June 2026, the cantonal parliament of Lucerne approved 17 million Swiss francs in financial assistance for Swiss Steel subsidiary Steeltec in Emmenbrücke, where 600 workers are employed. This cantonal allocation was structured to unlock a matching 17 million franc contribution from the Swiss federal government.

Path to 2028 profitability

Swiss Steel delisted from the SIX Swiss Exchange on 5 June 2025 following repeated annual deficits and extensive structural reorganizations. Company leadership is keeping the specific mechanics of the upcoming balance sheet restructuring private while negotiations with lenders and anchor shareholders continue. The executive board expects the group to emerge from the program as a smaller, more focused producer tailored to lower market volumes. Koch confirmed that the ultimate objective is restoring sustainable financial viability over the medium term.

Our plan provides that we will return to the operational profit zone starting from 2028.