Tata Steel cuts UK workforce by 900
London, United Kingdom (4E) – Tata Steel plans to scale back its operations in the UK, which means 900 people could be out of work including 600 workers in its south Wales plant.
The company was forced to restructure its UK business due to the slowdown in the British steel manufacturing industry. The move will affect jobs based in south Wales, West Midlands, Yorkshire and Teesside.
About 12-14 per cent of Tata’s consolidated total revenue is spent on personnel costs.
The company recently reported a quarterly loss of Rs 363.93 during the July to September period due to weakness of its European operations. Its European business account for three-fifths of its consolidated revenue being the continent’s second biggest steel producer.
As part of its £250m investment plan, Tata said that it would revive one of two blast furnaces at Port Talbot by early 2013.
Tata’s chief executive for European operations Karl Kohler stated that the company is moving toward becoming an “all-weather” steel producer and sustainable despite difficult economic conditions.
Tata, whose UK steel business workforce totals 19,000, noted that demand for steel in Europe has fallen by 25 per cent since 2007 and is expected to further drop by another 10 per cent in 2013.