Tata Steel is axing up to 800 jobs in a plant in the Netherlands to improve market conditions and reduce costs.
The firm said: “The steel market has been in dire straits for some time.
“In order to remain structurally competitive and profitable now and in the future, Tata Steel Netherlands is taking significant measures, including a reduction of 800 jobs in IJmuiden”
The steel giant currently employs about 9,200 people at the struggling IJmuiden facility.
The layoffs would impact roughly 500 full-time workers, mostly in managerial and support roles.
It also considers to eliminate an additional 300 temporary positions.
“More needs to be done”
Tata Steel said: “Despite all efforts by Tata Steel to improve its market position and reduce costs, more needs to be done.”
It added: “Forced redundancies cannot be ruled out and the company will discuss a social plan with the unions.”
Tata Steel is grappling with external issues, including accusations from health authorities and Netherlands residents.
They claim the company’s activities led to air, soil, and water pollution, allegedly causing illnesses among residents.
The company faces multiple legal claims regarding potential “intentional and unlawful” pollution.
Dutch prosecutors initiated a criminal probe in February of the preceding year.
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Reuters also reports Tata Steel’s IJmuiden factory has earned the dubious distinction of being the country’s largest single polluter.
The plant is responsible for approximately seven percent of the Netherlands’ total CO2 emissions,
The announcement comes in the wake of disclosures in September by Tata Steel, indicating that up to 3,000 jobs were in jeopardy at the Talbot plant in the UK.
However, the firm received a £500 million ($621 million) offer from the British government to decarbonize the facility.