Turmoil has erupted at German industrial giant Thyssenkrupp after a mega deal merging its steelmaking arm with India's Tata, with its bosses quitting amid an acrimonious battle with shareholders on whether to break up the venerable institution.
The leadership chaos sparked fears of further job losses as some key investors push for redical surgery on the two-century-old conglomerate that makes everything from elevators and submarines to car components, turnkey industrial installations and steel.
"It is clear that Thyssenkrupp is at a crossroads... aggressive restructuring may be in the cards," analysts at US investment bank Jefferies wrote Tuesday after supervisory board chief Ulrich Lehner followed chief executive Heinrich Hiesinger out of the door late on Tuesday.
Hiesinger, who quit earlier in July, and Lehner were both fierce defenders of keeping Thyssenkrupp's sprawling structure intact.
"I take this step consciously to enable a fundamental discussion with our shareholders on the future of Thyssenkrupp," Lehner said in his parting statement. "A break-up of the company and the related loss of many jobs is not an option," he warned in a final swipe at his opponents.
Tracing its roots back to 1811 and a household name of German industry for over a century, Thyssenkrupp booked 41.5 billion euros ($48.7 billion) of revenue in its 2016-17 financial year and employs some 159,000 people worldwide.
July should have been a month of optimism for the Essen-based group, after it sealed a deal in late June with India's Tata to merge their European steel operations.
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Bosses had hoped to find 400 to 500 million euros of annual savings, in part by shedding up to 4,000 jobs, persuaded that the merger would secure Thyssenkrupp's historic core against competition from a global flood of cheap Chinese steel.
But activist shareholders like Swedish investment firm Cevian and the US hedge fund Elliott want management to go further.
The two shareholders have been pushing for its dismantling with "methods that could even be described as psychological terrorism", Lehner told weekly Die Zeit earlier this month.
Beyond their fundamental differences with bosses over the company's direction, the investors also were displeased by the details of the Tata deal.
Hiesinger provided powerful German union IG Metall guarantees to preserve jobs and keep sites open.