Indian steel major Tata Steel’s European business – Tata Steel Europe, has said that it could cull as many as 1,250 jobs primarily to cut costs in the face of “challenging circumstances” and the “needs to urgently improve profitability”. According to a report published by the news agency Reuters, this was revealed in an internal company memo issued by Chief Executive Officer of Tata Steel Europe, Henrik Adam.
“Our financial situation is serious and there’s an urgent priority to improve the performance of the business and our cash position,” Adams said in the memo, reported Reuters.
The Reuters report however mentioned that the total number of job cuts that is being planned by the company is less than half of what it had already announced last year. Additionally, Tata Steel has also taken a decision of not to refill the positions in the company that have been left vacant because of retirement of employees or staff leaving the company.
Last year November, there were reports that the company had planned to trim as many as 3,000 of its staff from its business in Europe. At the point in time, Tata Steel has announced that an expected number of about 1,600 jobs in the Netherlands, 1,000 in the United Kingdom and 350 elsewhere would be cut by it.
The Reuters report further quotes from the Tata Steele internal memo as saying that the company is still in negotiations with its European works council to minimize job losses while also outlining the details of a transformation programme that has been planned by it.
“Although it’s good news that we are able to minimize the impact on our current employees, we need to progress with speed to secure the future for the business,” Adam reportedly said in the memo.
A call for “urgent talks” with the company has been given by the Unite union of the United Kingdom in relation to report published about the job cuts by Tata Steel. The labor union wants to hold discussions with the company about how employee in the UK will be impacted by this new strategy of the company which includes the operations of the company at the Port Talbot site in South Wales.
“Although the figure for possible job losses across Europe now appears to be smaller than originally thought, we will campaign against any job losses. We don’t believe that the company’s plans, which are centred on cost-cutting, are the answer,” said Tony Brady, Unite officer with national responsibility for Tata Steel.
(Adapted from AlJazeera.com)