Tata Steel Layoffs: UK-Based Indian Steel-Making Company To Cut 2,500 Jobs Due to Transition in Operation, Workers’ Unions Not Happy
Tata Steel layoffs would be inevitable and impact around 2,500 people at Port Talbot in the UK, said CEO Narendran. The Indian Steel-making company based announced the layoffs as it transitioned to a low-emission electric arc furnace.
Mumbai, June 2: Tata Steel's UK plant would be hit by the layoffs, according to the CEO Narendran. Tata Steel, under Tata Group, is an India-based steel-making company operating in South Wales in the United Kingdom. Tata Steel reportedly has 3 million tonnes per annum (MTPA) capacity, making it the UK's largest steelworks. At Port Talbot in South Wales, Tata Steel reportedly has about 8,000 employees working on all operations in the country.
As per aa report by Economic Times India Times, Tata Steel layoffs would affect around 2,500 workers at Tata Steel's operations in the United Kingdom, said CEO T V Narendran. Tata Steel UK's CEO also reportedly said that the layoffs would be inevitable due to the transition phase. Following this, many workers' unions in the country protested against India-based Tata Steel as many people working at the company grew afraid of losing their jobs. Google Cloud Layoffs: Google’s Cloud Unit Lays Off Unspecified Employees, Teams Focused on Consulting, Partner Engineering and Sustainability Affected Most.
Tata Steel Transition in the UK: Reasons and Details
The report highlighted that as part of decarbonisation, Tata Steel planned to shift its low-emission EAF (electric arc furnace) process from the BF (blast furnace) route due to it reaching the end of life. T V Narendran said that Tata Steel layoffs would result in 2,500 job losses and said that unions were not happy about it. He added that the company had been conversing with the unions to smooth things out; however, the layoffs would be inevitable.
The company's CEO emphasised that transitioning from BF to EAF would make it competitive and help it reduce costs and CO2 by about 5 million tonnes annually. The report mentioned that Tata Steel previously agreed with the government over a joint investment plan of £1.25 billion to execute decarbonisation plans at the steel facility at Port Talbot. Tech Layoffs 2024: May Witnessed Decline in Job Cuts Compared to April As 39 Companies Let Go 9,742 Employees, Says Report.
Regarding the closure of the furnace, Narendran said that in March, the coke ovens were closed, and in June, one blast furnace (BF) would close as it had been struggling to operate. Following this, he said the second blast furnace would also be closed in September for reasons such as asset quality and losing money. The Tata Steel CEO affirmed that the company would aim to complete its journey to decarbonise at the Port Talbot plant in the coming three years.
(The above story first appeared on LatestLY on Jun 02, 2024 01:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).