THE HAGUE (AFP) – Indian group Tata Steel said on Monday it would slash up to 3,000 jobs in Europe as it restructures European operations following the collapse of a planned merger.
The announcement came after weeks of speculation that the steel giant, which employs 11,000 workers in the Netherlands, would cut thousands of jobs to tackle structural challenges and weaker demand for European steel that is compounded by the US-China trade conflict. The group employed around 20,000 workers across the continent.
One way to improve the group’s finances was to cut employment costs, which meant “an estimated reduction in employee numbers of up to 3,000 across Tata Steel’s Europe operations,” the group’s European unit said in a statement.
About two-thirds of the cuts would likely affect administrative posts, Tata said.
“Stagnant EU steel demand and global overcapacity have been compounded by trade conflicts which have turned the European market into a dumping ground for the world’s excess steel capacity,” Tata said.