German industrial Titan Thiesenkrupp is preparing for a massive shake-up. Raising concerns about job cuts and looming divisions

Thyssenkrupp on Monday said it plans to plan a massive overhaul of splitting the vast conglomerate into several independent businesses, promoting fears of further unemployment and the looming division of the historic German industrial Titan.

While the German manufacturing symbol may have been like this before, Thyssenkrupp has been in high cost crisis at home in recent years, with the decline in prices for its products and fierce competition with Asian rivals, particularly the traditional steel business.

The conglomerate, which traces history in the early 19th century, had already announced massive employment cuts in the steel sector, and was about to spin-off some parts of the business.

However, plans announced on Monday go even further, gradually creating all segments of the group – from auto parts to green technology to standalone businesses, opening them up for external investment.

The current Thyssenkrupp group will be converted to holding companies that invest in individual companies.

Chief Executive Miguel Lopez said the plans presented to the Board of Supervisors by the end of September will help the group continue their “selected course.”

“The future independence of the current segment will increase the flexibility of entrepreneurs, strengthen investment planning and revenue responsibilities, and increase investor transparency,” he said in a statement.

This move will primarily affect those dealing with the group’s automotive technology and green technology units, as well as supply chain management.

The goal is for them to become independent companies in the coming years, and Thyssenkrupp will retain control.

Efforts to spin off lucrative submarine production forces are already underway, and Czech billionaire Daniel Krechinski has acquired a 20% stake in the steel business with the goal of increasing this to 50%.

“Dramatic situation”

Investors cheered the news by raising the share of over 8% in afternoon trading on the Frankfurt Stock Exchange.

But there was rage at the looming end of the famous German manufacturing giant, with around 100,000 employees worldwide, and the fear of more job openings.

“The German industrial icon has been demolished and thousands of jobs are at risk,” said Bild, a tabloid newspaper.

The group reported that the number of staff at Essen headquarters will be reduced from 500 to 100. Thyssenkrupp declined to comment on the report.

Politicians expressed anger at the potential impact of North Rhinewestphalia, the largest German steel manufacturer, with major business operations.

Dennis Radke, European Parliamentary member of Prime Minister Friedrich Mertz’s CDU Party, warned of “a dramatic situation across the steel industry’s value chain” as the restructuring plan progressed.

Originally, Radtke in the region told Stern Magazine that “Swift’s actions are needed to avoid a massacre that is more dependent on China. The Prime Minister must make the issue a top priority.”

China has become a major competitor of traditional European steel manufacturers in recent years.

A spokesman for the Western North Rhine River state said he is “examined” the latest developments of Thyssenkrupp.

“The state government’s “action focuses on securing work at Thyssenkrupp … and the entire value chain associated with the steel industry,” he told AFP.

Thyssenkrupp reports large annual losses over the past two years. Last November, it announced plans to cut approximately 11,000 jobs in the iron sector.

This story was originally introduced Fortune.com