Tata Steel on Wednesday said it will cut down around 1,600 jobs in the Netherlands in order to increase profitability amidst fierce competition due to the ongoing tariff war between China and the U.S. on the rising import tariffs. The decision will reduce Tata’s Dutch workforce by roughly 20%, mainly in their large steel plant at IJmuiden, on the coast west of Amsterdam.
Tata opined that the changes would reflect on the management and support staff working in IJmuiden, aiming to centralise its organisation while increasing its efficiency. The Dutch division reported a loss of 556 million euros ($613.05 million) in the year through March 31, 2024, due to the high energy prices and competition from cheap imports from China. The company is now also facing larger tariffs on its exports to the United States, adding to the struggles.
The company is facing challenges in curbing pollution from its plant, which authorities claim reduces the life expectancy of nearby residents by 2.5 months compared to the Dutch average. The IJmuiden plant is among the largest polluters in the country and Tata has been in talks with the Dutch government for months over subsidies to help it clean up production processes.
“This announcement is not in line with the discussions about Tata’s future,” Lacin said. “It is incomprehensible.”FNV labour union spokesman Cihan Lacin told Reuters, in a discussion about these talks, that one of the key pillars in these talks is the government’s demand for job guarantees.