Tata Steel’s Dutch Unit Announces 1,600 Job Cuts in €5 Billion Restructure

Tata Steel Nederland (Netherlands), the Dutch arm of Tata Steel Ltd, has announced plans to cut around 1,600 jobs. The cuts will mostly affect management and support functions. This is part of a wider restructuring linked to the company’s plan to transition to greener methods of steel production.

As of 9:49 AM on April 11, Tata Steel share price was trading at ₹134.07, up 5.42%, but down 17.96% over the past six months and 19.38% over the past year.

Consultation Process Begins

A formal Request for Advice has been submitted to the Central Works Council in the Netherlands. Consultations with trade unions are also underway. The restructuring will involve a reorganisation of the company’s local operations, changes to the management board, and a push towards increased automation and standardisation.

€5 Billion Green Steel Investment

The company is preparing for a €5 billion investment in green steel. As part of this, it plans to replace one of the two existing blast furnaces at its IJmuiden plant with a Direct Reduced Iron (DRI) unit and an Electric Arc Furnace (EAF) by 2030. This change is to reduce carbon emissions by around 5 million tonnes per year.

Plant Operating Near Full Capacity

The IJmuiden facility, which serves European customers and is located near a deep-sea port, is now operating close to its full capacity of 6.75 million tonnes per annum (MTPA) for FY25. This follows delays in FY24 due to a blast furnace reline. 

As per the reports, despite the recovery in output, the company is facing pressure from high energy costs, supply chain disruptions, and weak demand in the European market.

Talks with the Dutch Government

Tata Steel is currently in discussions with the Dutch government for financial and regulatory support to help fund the decarbonisation efforts. The company has also stated that it will take steps to address environmental concerns raised by local communities.

Conclusion

The job cuts and structural changes are part of a long-term plan to manage costs and shift towards lower-emission steel production.

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