In response to ongoing challenges in the steel industry, Tata Steel has announced plans to reduce 800 positions at its Ijmuiden site in the Netherlands. The move aims to enhance competitiveness and profitability during a period of difficulty for the sector.
While 500 Tata Steel employees, mainly in management, staff, and support roles, will be directly affected, the company emphasizes the importance of retaining technically trained personnel at the facility. While forced redundancies may occur, Tata Steel will engage in discussions with unions to establish a social plan.
The remaining 300 job cuts will target temporary workers, and the company will refrain from filling non-production-related vacancies. Tata Steel acknowledges the prolonged challenges faced by the steel market and deems these measures crucial for ensuring long-term competitiveness and profitability.
Presently, Tata Steel employs approximately 9,200 personnel in IJmuiden, located about 30 km from Amsterdam. Despite substantial investments in transforming into a cleaner, greener, and more circular steel company, Tata Steel Netherlands reported an EBITDA loss of `2,317 crore in April-September 2023.
The decision to reduce jobs, described as "difficult," comes despite ongoing efforts to improve market position and reduce costs. The company cites the necessity of addressing personnel costs, although it emphasizes a commitment to retaining technically trained personnel for production roles.
Tata Steel posted a surprising net loss of `6,196 crore on a consolidated basis for the quarter ended September, impacted by the weak performance of its European operations. This contrasts with a net profit of 1,514.42 crore in the comparable year-ago period. Consolidated revenue fell 7% to 55,682 crore, and EBITDA dropped 29.6% to 4,268 crore during the same period.
