Companies

Tata Steel to embark on Euro 830-mn cost-cutting drive in Europe

Our Bureau Mumbai | Updated on October 22, 2019 Published on October 22, 2019

A seasonally weaker monsoon quarter affected the overall demand for steel   -  Bloomberg

Tata Steel is looking to cut 2,500 jobs across its European operations in a bid to cut costs. According to a report in Dutch media outlet, NH Niuews, this is being done to save around Euro 830 million, and a large part of the cuts may come from the company's Netherlands operations.

This was communicated through a memo to the staff, which is in possession of the Dutch media agency. The works council fears that 2,500 jobs will disappear throughout Europe.

The Central Works Council (COR), the workers’ union, said the cost-cutting measures could lead to job losses for around 2,500 employees in Velsen, France, England and Belgium.

In a recent interview with BusinessLine, T. V. Narendran, CEO and Managing Director, Tata Steel, said the focus in Europe is on making operations cash positive. "We are also looking at how to optimise capex. So the challenge to our team there is if you are cash positive, then you are no longer dependent on India for any support -- you are sustainable on your own. We are closer to it happening than ever before. If the market were not so bad we would have achieved, it but now it may take more time," Narendran said.

In September, Tata Steel Europe announced plans to close operations at its subsidiary, Orb Electrical Steels in Newport, South Wales, and at the Wolverhampton Engineering Steels Service Centre in the UK, leading to a potential loss of 406 jobs.

Published on October 22, 2019
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