Tata Steel confirms likely job cuts

Tata Steel is likely to reduce headcount as a result of its transformation programme, the company confirmed to Argus today.

“Proposals are being developed to improve our supply chain, our manufacturing performance and raw materials usage, as well as efficiency gains through digitalisation. We expect these to include a reduction in our employment costs,” the company said today when asked about local media reports it plans to cut 2,500 jobs to save $930mn/yr.

Tata launched its transformation programme in June, and managing director TV Narendran told Argus last week that it would not entail any change to the firm’s upstream production mix, and would focus more on downstream operations.

The programme was designed with the aid of consultants Alvarez and Marsal and Boston Consulting Group — the former working at the company’s south Wales operations and the latter in Ijmuiden, the Netherlands.

The company’s distribution business — where it is consolidating operations — is the subject of speculation. Tata recently told workers it would be shutting its Degels service centre in Neuss and shifting work to another site.

“We are aiming to develop a simpler and leaner organisation, capable of sustainably financing high levels of investment,” Tata said.