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Tata Steel has reportedly cut 800 jobs in its European division. The job cuts are part of the transformation program announced by the company in 2019. Incidentally, the program aims to cut nearly 3,000 jobs, mostly office-based jobs, out of total workforce of nearly 20,000 people in Europe.
Commenting on the decision, T.V. Narendran, Tata Steel Global CEO and Managing Director noted that it is highly difficult process to reduce workforce. Since the beginning of 2020, it has reduced the region’s total workforce by almost 800. The company has done similar exercises before and will be forced to do it in future as well, in order to make the operations cash-positive.
The company said the continuation of the transformation program for another one year could make the spreads to around Euros 220, which will make the operations cash positive. The spreads are around Euros 180 levels currently. It must be noted that the company had reported net loss of INR 1,228 crore in the recently announced third quarter results.
Meantime, unions, including European Works Council (EWC) have already raised opposition to the company’s plan to lay off more employees. The employees must not be held responsible for the company’s failures, they said.