Tata Steel announces to cut 3000 jobs

Latest news suggests Tata Steel is to cut as many as 3000 jobs in its European business. The plan comes forth as the Indian multinational steel-making company tries to cope with a “severe” international steel market.

According to reports, the company attributes the decision to its focus on higher-value products. The company also adds that there will be no plant closures and two-thirds of the job cuts will be office based.

Tata Steel has announced the new plan after the merger with its German rival Thyssenkrupp was blocked during the summer. Experts believed the deal would minimize the costs.

Henrik Adam, chief executive of Tata Steel in Europe said the company was drawing attention to significant proposals which helped in building a financially strong and sustainable European business.

“We plan to change how we work together to enable better cooperation and faster decision-making. This will help us become self-sustaining and cash positive in the face of unprecedented severe market conditions, enabling us to lead the way towards a carbon-neutral future,” he added.

Figures allege, the business employs about 20,000 people. Following Tata’s announcement, Wales’ economy minister Ken Stakes said he was in talks with Tata to understand what the plan meant for workers in Wales and how the government can support the ones affected by the announcement of job cuts.

Port Talbot employs around half of Tata’s workforce. Figures estimate 8,385 workers, whereas British Steel employs 4000 people in Teesside and Scunthorpe.