ArcelorMittal Italia announced its decision to lay off nearly 1,400 workers at the former Ilva iron and steel works in Taranto, in southern Italy. Layoffs will be for 13 weeks. A company press release states that the decision has already been transferred to Italian national and local unions. More detailed information regarding layoffs will be announced during a meeting this Thursday between representatives of the company and the union.
Announcing the decision, ArcelorMittal Italia Mathieu Gelle, the chief executive officer of ArcelorMittal Italia, said that the critical conditions in the steel market throughout Europe forced the company to make a difficult decision. He noted that layoffs are temporary and that any change in market conditions may lead to suspension of layoffs. In addition, he confirmed his commitment to implement an industrial plan worth $ 2.70 billion, which will lead to a significant reduction in the environmental impact of the Taranto plant.
The decision is likely to affect the annual steel production in the European region. In early May of this year, ArcelorMittal announced its plans to reduce annual steel production in 2019 by 3 million tons. By the end of May, the company announced a further reduction in steel production by another 1-1.5 million tons in 2019.
Last week, the company announced production cuts at several EU steel mills in Germany and Spain after the current weak market conditions.
Meanwhile, the company offered full support to affected employees and their families during this difficult time.
