Steelmaker Corus to cut 2000 jobs
Corus, the fifth largest steelmaker in the world is set to cut 2000 jobs in both the United Kingdom and The Netherlands. 123 jobs are reported to be going in The Netherlands with the remainder going in the United Kingdom. Corus have blamed the job cuts due to the “further deterioration” for the demand of steel in both the United States and Europe.
Corus chief Kirby Adams said “Any recovery in Europe appears to be some time off”. He added that Corus have to achieve long-term sustainable competitiveness. In January of this year Corus cut around 3,500 staff worldwide with 2,500 of them being British jobs.
Peter Hogg, a commercial director at Corus reported that Corus was surprised at the extent of the global recession. He added that it is clear a full recovery is years away.
Some plants were hit harder than others. The plant in Scunthorpe lost 500 members of staff, Stocksbridge lost 379 and Rotherham lost 377. A total of 11 plants lost staff as well as jobs in The Netherlands.
Elliot Morley, the Labour MP for Scunthorpe told the BBC that he was disappointed with the job cuts and said he had previously told Corus that job cuts should be a last resort. He added that this is a “sad day” for Scunthorpe.
The union general secretary Michael Leahy said that it was “devastating news” and spoke of his concerns for the “integrity” of the British steel industry.
Corus is the fifth largest steel maker in the world and the second in Europe. The company was bought by Tata Steel, part of India’s Tata Group in 1999. The company has around 50,000 employees world wide.
The Tata Group (Hindi: टाटा समूह) is a multinational conglomerate based in Mumbai, India. In terms of market capitalization and revenues, Tata Group is the largest private corporate group in India and has been recognized as one of the most respected companies in the world. It has interests in steel, automobiles, information technology, communication, power, tea and hospitality.