Mumbai: Industrial giant Tata Steel on Tuesday announced a major shuffle in its operational structure in Britain which is likely to render over 1200 employees jobless.
Tata Steel, which became the largest steel company in the country after acquiring British Steel in March 2007, plans to halt production of steel plate, which would lead to about 900 job losses in Scunthorpe in northern England and 270 in Scotland.
According to a report, about 5,100 jobs may be cut out of just under 30,000 employed in the steel industry in Britain, which once fulfilled half of the world’s steel demand.
High production costs, low imports and diminishing pound have battered the steel industry badly resulting in thousands of job cuts in Britain.
Tata Steel, Europe’s second-largest steel producer, has cut thousands of jobs since it bought Anglo-Dutch producer Corus in 2007.
Tata’s decision puts more pressure on British Prime Minister David Cameron, who said on Monday he would raise the issue of subsidised steel with China during a visit to Britain this week by President Xi Jinping.