Tata Steel Europe is likely to carry out massive job cuts in its European operations as part of cost savings. The company decided to cut about 2,500 jobs in the region, which makes up almost one fourth of its European workforce. Through job cuts, the company seeks to save $ 930 million.
It is reported that the company issued a memo to employees. The memorandum says that this proposal is part of a transformation program launched earlier in June this year, which aims to improve the supply chain, the efficiency of production and use of raw materials. Job cuts will be carried out in all European divisions of the company in the Netherlands, France, England and Belgium, with Tata Steel Nederland likely to have the greatest impact.
Meanwhile, the workers' union announced its decision to intervene in this matter. This decision was rather unexpected, as Dutch operations continue to be profitable, it says. According to the union, a final job cut plan is expected by next month.
This step is part of the company's strategic plan to reduce European business and increase investment in operations in India. Earlier, in 2018, Tata Steel began the merger of its European enterprises with the German Thyssenkrupp. However, the company had to finally abandon the plan after the objections of the antitrust authorities of the European Commission.
It should be noted that Tata Steel Europe decided to close its Degels service center in Neuss, Germany, which processes industrial hot-dip galvanized coils. It was also mentioned as part of the Tata transformation program.
