Tata Steel has confirmed plans to cut up to 1,000 jobs in the UK as part of a wider cost reduction programme affecting 3,000 roles across Europe. The job losses represent nearly one in eight of the company's British workforce, with two-thirds of the cuts targeting white-collar management and office-based positions.
The announcement comes as a shock to unions, who said they were not consulted before the cuts were made public. Community, the steelworkers' union, expressed serious concern about the direction of Tata Steel Europe and criticised the lack of a long-term vision. The union blamed the cuts on Tata's failure to have a 'plan B' after the collapse of a planned merger with Germany's Thyssenkrupp, which was blocked by the European Commission on competition grounds.
Tata Steel's European chief executive, Henrik Adam, said the company cannot afford to stand still and must adapt to a fast-changing world. He acknowledged the tough market conditions and the concerns of employees. The company plans to produce higher value steels, improve production processes, and reduce costs as part of its turnaround strategy.
Almost half of Tata's UK staff are based at its Port Talbot site in South Wales, which employs about 4,000 people. The job cuts come at a difficult time for the UK steel industry, following the recent rescue of about 4,000 jobs at British Steel by Chinese firm Jingye. Local politicians have expressed distress and uncertainty for workers and their families.
