British Steel to cut 400 jobs just two years after launch
British Steel is to cut 400 jobs, including roles in the UK, in order to “secure a sustainable future”, just two years after the company began trading.
The firm was created in 2016 by the sale of Tata Steel’s Long Products Europe business to Greybull Capital, a deal that saved 4,400 UK jobs.
The cuts will affect managerial, professional and administrative roles at its operations throughout the UK, Ireland, France and the Netherlands.
The company operates manufacturing plants in Scunthorpe, Skinningrove and Teesside, and carries out research and development in Rotherham.
British Steel’s finance chief said the recent weakening of the pound and the euro had implications for the group because the raw materials it uses are all traded in US dollars.
Roland Junck, the company’s executive chairman, said: “Following our launch and early growth as a new
company, it’s important our business continues to evolve. It’s imperative we enhance our products and services and become more competitive so we can increase our foothold in the market.
“However, the pace of change we need in this challenging industry requires further and continued investment along with more agile and efficient operations.
“To help us achieve this, we have to make difficult decisions and our plans unfortunately include the proposed reduction of 400 roles across our global workforce.”
Mr Junck added: “We’re sad to be making this announcement, particularly for our colleagues who could be affected. The skill and dedication of our employees has helped us come a long way in a short period of time.
“However, it’s vital our transformation continues so we can build a sustainable future for the whole business, nearly 5,000 employees and many more people in the supply chain. We’re confident these proposals will help achieve this.”
A spokesperson for the National Trade Union Steel Coordinating Committee said the announcement “will come as a body blow to the workforce who have already made huge sacrifices to make the business sustainable.”
The spokesperson added: “We recognise these are challenging times for UK steelmakers, and it’s high time the government stepped up and delivered for us by supporting investment in strategic steel assets.
“However it is particularly disappointing the company has chosen to cut jobs so soon after celebrating a second successful year and first quarter profits of £21m.
“The company must now comply with its European and UK consultation obligations and present the detail behind the proposals to employee representatives. Throughout the consultation process the trade unions will challenge every job reduction and seek to mitigate the impact of the company’s proposals on our members.”