Tata Steel is cutting hundreds of office jobs

Tata Steel has revealed plans to cut 800 jobs at its steel factory in IJmuiden. The layoffs are expected to predominantly affect management, staff, and support functions. A spokesperson emphasized that there will be no intervention in shift work.

Driving Factors and Impact

Tata Steel expressed the need for “major measures” to ensure competitiveness in the steel market and facilitate the transition to sustainability. The factory in IJmuiden currently employs 9,000 individuals, with 5,400 not engaged in steel production shifts.

Approximately 500 office jobs held by Tata employees are set to be phased out as part of the announced reduction. Additionally, around 300 positions, including temporary roles and vacancies, will be eliminated, constituting just over 9% of the office functions at the company.

Tata Steel has acknowledged the possibility of forced redundancies and is yet to engage in discussions with labor unions regarding a social plan for the impacted employees.

Motivation for the Layoffs

Tata Steel has cited the insufficiency of prior efforts to improve its market position and reduce costs. The company emphasized the necessity for further cost reductions, inclusive of personnel expenses, to advance its transition to a cleaner, greener, and more circular steel company.

Continued Need for Technical Expertise

Amidst the announcement of layoffs, Tata Steel underscored that the measures do not signify a complete hiring freeze. The company emphasized the ongoing necessity for technically trained individuals, particularly in production roles.