Tata Steel, the largest steelmaker is likely to cut about 2,500 jobs across its struggling European operations, or a quarter of its European workforce, media reported. The majority of these jobs are expected to be culled from the steel mills in the Netherlands, the Dutch media reported. The job losses will lead to a cost-saving of $930 million for the company, the report adds.
In an interview, a spokesperson for Tata Steel said, “Like all European steelmakers, Tata Steel Europe continues to experience challenging market conditions, made worse by the use of Europe as a dumping ground for the world’s excess capacity. We launched a transformation programme in Tata Steel Europe in June to strengthen our business. We are aiming to develop a simpler and leaner organisation, capable of sustainably financing high levels of investment which are essential to our long-term success”.
“This programme is gathering pace to urgently improve our performance. Proposals are being developed to improve our supply chain, our manufacturing performance and raw materials usage, as well as efficiency gains through digitalisation. We expect these to include a reduction in our employment costs which would be subject to the full consultation process with employee representatives,” the report said.