Tata Steel Confirms Massive Job Cuts Across Europe

SEATTLE (Scrap Monster): Tata Steel announced its decision to cut up to 3,000 jobs across its European steel operations. The move is considered part of restructuring and cost-cutting strategy, in the midst of global overcapacity and muted steel demand growth in European countries.

According to company press release, nearly two-thirds of the proposed job cuts will be office-based white collar jobs, with majority of cuts expected to take place in the Netherlands operations. The information, along with an initial overview on its impact on the company’s organizational structure has already been presented to the select committee of the European Works Council.

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The proposed transformation programme will help the company to create foundation for its future success. Tata Steel Europe targets a positive cash flow by the end of the financial year ending March 2021. Further, it also aims to achieve an EBITDA margin of around 10%. The move will contribute towards building a financially strong and sustainable European business, said Henrik Adam, CEO, Tata Steel Europe.

Meantime, the steelworkers unions in Britain and the Netherlands said that they would fight Tata Steel’s plans to cut jobs. Following the collapse of the joint venture deal with German Thyssenkrupp, the company had provided jobs guarantee until 2021, they said. The unions have decided to robustly defend the 2021 jobs agreement.