On November 19, Tata Steel said it would cut nearly 3000 jobs in its European business due to weak demand for steel products, oversupply in the market, high production costs and poor overall performance in Europe.
Tata said in a statement that it is now vigorously increasing the sales of high value-added products, improving production efficiency, and increasing the company's revenue through layoffs. It is reported that two thirds of the job cuts are office jobs.
Tata Steel, headquartered in India, launched a transformation plan in June to strengthen its European operations, including steel mills in the Netherlands and Wales and downstream operations throughout Europe.
Tata said it would not shut down any steel plants. The move is to address weak demand, overcapacity and trade issues and aim for positive cash growth at the end of the fiscal year to March 2021.
Previously, Tata sought to merge its European steel business with ThyssenKrupp, Germany. Since then, Tata has sought to actively develop its European business because of anti-monopoly factors being blocked. In the first six months of April 2019, Tata Steel Europe's EBITDA fell by 90%. (From LGMI)