Tata Steel announces 800 job cuts in Netherlands to ensure profitability

Tata Steel announces 800 job cuts in Netherlands to ensure profitability

New Delhi, Nov 14 (PTI) Tata Steel, which is seeking a financial aid for its Dutch operations, has said it will cut 800 jobs in the Netherlands to ensure structural competitiveness and profitability.

In October 2021, Tata Steel completed the process of separating Tata Steel UK and Tata Steel Netherlands as two independent companies from Tata Steel Europe.

In the Netherlands, the company has a 7 Million Tonne Per Annum (MTPA) plant in IJmuiden.

The company's goal is to produce CO2-neutral steel by 2050 in Europe.

'The steel market has been in dire straits for some time. In order to ensure structural competitiveness and profitability, both now and in the future, Tata Steel Nederland is implementing significant measures, including the reduction of 800 jobs in IJmuiden,' Tata Steel said in a statement.

Tata Steel will improve its market position and reduce costs... and the company also needs to further reduce personnel costs, the statement said.

The decision to reduce the number of jobs is a difficult one, with potentially significant personal impacts on employees and their families, the company said.

The job reduction is expected to affect about 500 Tata Steel employees, primarily in management, staff, and support positions.

There is emphatically no intervention in the five-shift system. Forced redundancies cannot be ruled out, and the company will discuss a social plan with the unions.

The remaining 300 jobs that will be eliminated concern the work of temporary workers and not filling vacancies not directly related to the production.

'The measures being taken are also in the interest of transforming into a cleaner, greener, and more circular steel company. Substantial investments are being made now and in the coming years.' 'It is, therefore, crucial to maintain a strong competitive position and to be agile enough to respond to rapidly changing circumstances and new developments,' Tata Steel said.

The company further said it would go for fresh hirings as there is no freeze on induction of new skilled talent.

Despite the reduction in the number of jobs, there is no complete hiring freeze, it said.

The need for technically trained people, for example in production, remains. Both now and in the future, in the next steps of our green steel plan, Tata Steel said. PTI ABI TRB TRB TRB

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