Tata Steel Announces Massive Job Cuts Across Europe

SEATTLE (Scrap Monster): Tata Steel Europe is likely to implement massive job cuts across its European operations, as part of cost savings. The company has decided to cut around 2,500 jobs in the region, which accounts for nearly one-fourth of its European workforce. Through these job cuts, the company aims to save $930 million in costs.

The company has reportedly issued memo to employees. The memo states that the proposal is part of the transformation programme launched earlier in June this year, which is aimed at improving its supply chain, manufacturing performance and raw material usage. The job cuts will be implemented across the company’s European operations in the Netherlands, France, England and Belgium, with Tata Steel Nederland likely to be impacted the most.

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Meantime, the worker union announced its decision to intervene in the matter. The decision was quite unexpected as the Dutch operations continue to remain profitable, it noted. The final plan on proposed job cuts is expected by next month, the union said.

The move is part of company’s strategic plan to shrink European business and invest more in India operations. Earlier in 2018, Tata Steel had initiated merger of its European operations with German Thyssenkrupp. However, the company had to finally drop the plan following objections from European Commission anti-trust authorities.

It must be noted that Tata Steel Europe had decided to close its Degels service centre in Neuss, Germany, which processes industrial hot-dip galvanized coil. This was also cited as part of Tata’s transformation programme.