Tata Steel set to cut more jobs in UK

Calcutta, July 9: Tata Steel today announced another round of job cuts in the UK as its European operation continued to reel under the recession.

The company said 366 jobs could be axed at one of its largest plant at Scunthorpe in north Lincolnshire. Corus, Tata Steel’s European subsidiary, has cut 2,500 jobs so far this year. While announcing the full-year result last month, Tata Steel had said 1,922 jobs would be cut, with the Rotherham, Teesside and Scotland plants facing the maximum layoffs.

A company statement today said the move was aimed at improving “competitiveness” of the Scunthorpe site by “aligning employment cost with anticipated steel demand”.

“Consultation with employees and their representatives have begun on the Scunthorpe site today,” the statement added. The company said it would offer “support packages” to those who would be leaving.

“Wherever possible the company will seek voluntary redundancies while at the same time ensure that critical skills are retained,” Tata Steel said.

Corus’s operations in Europe are operating at 55 per cent capacity as the economic recovery has been slower than anticipated.

The demand from construction, consumer durables and automobiles continue to be slow in Europe.