SINGAPORE: Tata Steel Ltd. plans to axe about 3,000 jobs across its European operations to cut costs in the latest blow to the region’s industry.
About two-thirds of the estimated reduction in staff would be office-based, or white-collar, positions, according to a statement. The company didn’t give a detailed breakdown of where the job losses would take place
“Stagnant EU steel demand and global overcapacity have been compounded by trade conflicts, which have turned the European market into a dumping ground for the world’s excess steel capacity,” Tata Steel said.
The European steel industry has faced growing headwinds this year amid declining demand, slowing growth and the consistent threat from supplies from overseas, including exports from Turkey, Russia and China. British Steel Ltd., the U.K.’s No. 2 steelmaker was put into liquidation in May, and has been taken over China’s Jingye Group Co. Apparent steel demand in the European Union will contract 3.1% this year, lobby group Eurofer warned last month.
The steelmaker’s European operations are facing “unprecedented severe market conditions,” Henrik Adam, chief executive officer of Tata Steel in Europe, said in the statement. Other steps to pare costs included boosting sales of higher-value steels, increasing efficiency and cutting procurement costs.
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