Tata Steel Europe Declares Urgent Job Cuts to Face Challenging Circumstances

SEATTLE (Scrap Monster): Tata Steel Europe plans to cut nearly 1,250 jobs. The internal memo by the company states that the job cuts are inevitable in order to improve profitability and help the company better face the ongoing challenging circumstances. Last November, the company had hinted at 3,000 job cuts.

Dr. Henrick Adam, Chief Executive Officer of Tata Steel in Europe noted that the financial situation of the company is serious and that there is an urgent priority to improve its business performance and cash position. The latest round of job cuts accounts for only half of what the company projected last year. The earlier estimates suggested job cuts of up to 1,600 jobs in the Netherlands, 1,000 in the United Kingdom and 350 elsewhere in Europe. Meantime, the company has decided not to replace employees who have retired or left the company.

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UK’s Unite Union has called for urgent talks to discuss the implication of the job cuts decision announced by Tata Steel. The talks with the company management aim to ascertain the exact implications for jobs in the UK, especially in Wales where the company has a large presence. The unions will campaign against job losses, said Tony Brady, Unite officer with national responsibility for Tata Steel.