- Friday, April 26, 2024
By: Radhakrishna N S
TATA Steel said on Wednesday (27) that it is likely to reduce jobs across the UK.
The company plans to retrench 1,600 employees in the Netherlands, 1,000 in the UK, and another 350 jobs globally. It has started discussions with the European Works Council (EWC) on proposals to transform its business.
The Indian giant is likely to reduce its staff strength by 3,000 globally, of which two-thirds of the job losses will be in management and office-based roles, the steel producer said.
The Indian multinational steel-making giant’s latest move came as part of its restructuring plans.
The plans to cut 1,000 jobs at Tata Steel appear to centre around the workforce in Wales, Economy Minister Ken Skates has said.
Speaking in north Wales, the minister said it would probably take until February for all the details to emerge but it “appears to be the case” and the 1,000 jobs could be slashed from the Welsh staff-force.
Port Talbot, the UK’s biggest steelworks, has a staff strength of 4,000 – nearly half of Tata’s UK workforce.
The company is yet to confirm which UK location will suffer from job loss.
Henrik Adam, Tata Steel in Europe Chief Executive, said: “… Change creates uncertainty, but we cannot afford to stand still as a company – the world around us is changing fast and we have to adapt. Our strategy is to build a strong and stable European business, capable of making significant investments needed for a successful future.”
Tata Steel has agreed with the EWC on a forward process and will meet again in the coming weeks to discuss further details. It will continue to update its employees and other stakeholders during the process.
In a move to strengthen its financial condition, the Indian steel firm also aims to raise its sales of higher-value steels, optimise production processes and slash its procurement costs.
