Tata Steel will cut 800 jobs at its Ijmuiden plant in the Netherlands as part of efforts to ensure "competitiveness and profitability" during a difficult period for the industry. However, there will be no complete employment freeze because the facility requires technically trained workers.
Around 500 Tata Steel employees will be laid off, largely in management, staff, and support roles. Forced redundancies "cannot be ruled out," the firm stated in a statement, adding it will develop a social plan with the unions. The remaining 300 jobs will be filled by temporary workers, and the company will not fill openings that are not directly tied to production, according to Tata Steel.
"The steel market has been in trouble for quite some time. Tata Steel Nederland is implementing major actions, including the elimination of 800 positions at Ijmuiden, to ensure structural competitiveness and profitability today and in the future, according to a statement.
Tata Steel currently employs over 9,200 people in IJmuiden, which is about 30 kilometers from Amsterdam. Tata Steel Netherlands recorded an EBITDA loss of '2,317 crore for the fiscal year April-September 2023. The "difficult" choice was made despite all efforts to strengthen market position and decrease costs, according to the corporation, which also stated that human costs must be reduced.
These actions are also intended to help the company become a cleaner, greener, and more circular steel company, it said, adding that significant investments are being made.
However, because there is still a demand for technically educated individuals, such as in manufacturing, there will not be a complete hiring freeze. Tata Steel reported an unexpected net loss of '6,196 crore on a consolidated basis for the quarter ended September, missing Street projections due to poor performance in its European divisions.
In comparison, the steel company had a net profit of 1,514.42 crore in the previous year. The consolidated revenue of Tata Group declined 7% to 55,682 crore in the current quarter, from 59,878 crore in the previous quarter. Its EBITDA declined 29.6% from 6,060 crore to 4,268 crore.