Swiss Steel reports 311 million euro loss and plans German job cuts

Swiss Steel CEO Frank Koch stated, We have a clear plan for the restructuring of the Swiss Steel Group, as the Luzern-based steel manufacturer announced further structural adjustments and job reductions at its German plants, according to 20 Minuten.

The company posted a net loss of 311 million euros for 2025, following a loss of 197 million euros in 2024, as revealed in an unpublished annual report cited by the SonntagsZeitung and reported by 20 Minuten, SRF, and Alpine Weekly. The severe downturn stems from a roughly 45 percent drop in revenue since 2022—falling from over 4 billion euros down to 2.24 billion euros—driven largely by the ongoing crisis in the automotive industry.

The Tech TL;DR:

• Swiss Steel recorded a 311 million euro loss for the 2025 financial year, bringing its equity down to 25 million euros.
• The company plans further workforce reductions at its German manufacturing sites to reduce its exposure to the struggling automotive sector.
• Major shareholder Martin Haefner and participating banks face requests for fresh capital infusions and debt forgiveness to execute a balance sheet cleanup targeted for a 2028 return to profitability.

Financial Collapse and Equity Erosion at Swiss Steel

The undisclosed 2025 financial report shows that Swiss Steel’s equity has dwindled to just 25 million euros. Primary shareholder Martin Haefner must inject substantial fresh capital into the firm, while commercial banks are asked to write off a portion of their outstanding loans. These measures form the core of an upcoming balance sheet restructuring.

The decline marks a continuation of multi-year contractions. Swiss Steel previously halved its headcount from 13,000 to 6,500 employees, and CEO Frank Koch confirmed that the upcoming German plant restructuring will reduce employee numbers even further. In 2025, the company officially withdrew from the SIX Swiss Exchange to facilitate these large-scale reorganizations.

EU Trade Protections Reduce Swiss Steel Export Quotas

While 20 Minuten and Alpine Weekly emphasize the steep 45 percent revenue contraction driven by weak automotive demand, SRF highlights the compounding pressure from recent European Union trade protections. According to CEO Frank Koch, new EU measures against foreign steel imports reduced Switzerland’s duty-free export quota by approximately 35 percent, severely impacting operations at the headquarters in Luzern.

Swiss Steel is actively engaged in discussions with both the European Union and the Swiss government regarding the trade restrictions. Koch noted that there is reasonable hope for a solution concerning the export quotas. Domestically, regional support has also mobilized; in mid-2026, the Lucerne Cantonal Council approved 17 million Swiss francs in financial aid for the Swiss Steel subsidiary Steeltec in Emmenbrücke to match federal funding requirements for its 600 local employees.

Swiss Steel Targets Operational Profits by 2028

Management has set a multi-year horizon to stabilize operations against structural market shifts. CEO Frank Koch outlined that by 2028, the company will operate on a significantly smaller, highly focused footprint designed to generate operational profits despite diminished regional demand. Specific numerical targets for the upcoming German job cuts were not disclosed in the initial interviews.

Alpine Weekly points out that European steelmakers face a convergence of high energy costs, cheap Asian imports, and stricter EU trade defense mechanisms alongside weakened automotive demand.