Tata Steel looks to boost profits by cutting 3,000 jobs in Europe
- Indian multinational
Tata Steelis planning a massive restructuring to boost profits.
- The steel conglomerate is laying off as many as 3,000 jobs across Europe — and almost two-thirds of them will be office jobs, BBC reports.
Tata Steel Europeoperations recorded a 90% drop in pre-tax profits for the financial year 2019-20.
However, no plants will be closed, the company said. This will primarily affect jobs across its offices in the Netherlands and Wales.
“While the scale of the job cuts has not been confirmed, the axe would fall across the whole business at all its locations that collectively employ about 20,000 people, though there were no planned closures,” said Chief Executive Henrik Adam.
The move comes after the fluctuation in international markets with weak demand, higher costs and trade wars.
Tata Steel Europe operations recorded a 90% drop in pre-tax profits for the financial year 2019-20.
European steel producers witnessed a reduction in profits due to higher material costs and fall in prices. One reason is a global slowdown in auto sales. According to a Business Standard report, steelmakers have lowered the contract prices by up to 14%.
The impact has led to temporary shutdowns and lower output. The steel company has now set plans to close the next financial year at £750m in pretax profits. Last week, Chinese steelmaker Jingye signed a deal to buy British Steel, which was sold by Tata three years ago.