Tata Steel has announced plans to cut around 1,600 jobs at its IJmuiden operations in the Netherlands as part of a "major transformation programme." The layoffs account for approximately 20% of the company’s workforce in the country.
In a stock exchange filing, Tata Steel said its Dutch subsidiary has filed a Request for Advice with the Central Works Council to begin consultations on specific elements of the transformation plan.
The reorganisation will primarily impact management and support function roles and also involve changes to the local management board of Tata Steel Nederland (TSN).
Tata Steel’s Dutch unit reported a loss of €556 million ($613 million) for the financial year ending March 31, 2024, due to high energy costs and competition from low-cost Chinese imports, according to Reuters. The company is also facing increased import tariffs in the United States.
“The challenging demand conditions in Europe—driven by geopolitical developments, trade and supply chain disruptions, and rising energy costs—have affected our operating costs and financial performance,” Tata Steel said in the filing.
The Tata Sons-owned company added that in FY2025, operations in the Netherlands had recovered, with liquid steel production nearing full capacity at 6.75 MTPA, following the delayed reline of one of its blast furnaces in FY2024.
“With today’s announcement, we are taking a necessary step toward building a sustainable and future-proof steel company. As the Board of Directors of TSN, we are fully aware that this restructuring may significantly impact our people, and we are committed to working closely with all stakeholders to navigate this difficult path,” said Hans van den Berg, CEO of Tata Steel Nederland.
Tata Steel also reiterated that its IJmuiden plant is strategically positioned for a green transition, benefiting from access to offshore wind energy and the infrastructure needed for sustainable steel production.
CEO T.V. Narendran said the company is in close discussions with the Dutch government and other stakeholders regarding investments under the Green Steel plan. He affirmed Tata Steel’s commitment to restoring IJmuiden as one of Europe’s most efficient and sustainable steelmakers.
