Tata Steel cuts layoff targets by nearly half amid union backlash

Tata Steel has scaled back the number of job cuts in its ongoing reorganization, but unions remain sharply critical, accusing the company of creating “enormous chaos” and throwing thousands of workers into uncertainty, De Telegraaf reports.

The steelmaker now plans to eliminate 1,224 full-time positions, down from the 1,600 announced in April. The new figure was disclosed Monday as Tata Steel internally distributed its detailed advisory request to the works council. The restructuring is part of a broader transformation program allegedly aimed at restoring profitability.

According to Tata Steel, the planned workforce reduction includes 425 positions that will disappear through natural attrition—by not renewing temporary contracts and leaving vacancies unfilled. The company expects to declare approximately 800 employees redundant. This is half the number initially projected in April.

The company also aims to cut 150 million euros in annual personnel costs, with a focus on reducing management positions. Despite the reduction in projected layoffs, labor unions reacted with outrage.

Hans Korver, a representative from the union De Unie, said he was “unpleasantly surprised” by the latest announcement. “This sounds more favorable than the April report. But now we know that 3,245 employees are being declared redundant. And there are even more people left in uncertainty,” Korver told De Telegraaf.

CNV was equally critical. Union official Marten Jukema noted that roughly 4,000 employees have been informed they may be affected by the reorganization. “These people have no idea where they stand, especially since the descriptions for the new job openings are still missing,” he also told De Telegraaf.

FNV also condemned the company’s approach. “The company is eliminating countless existing positions and inventing new ones in their place,” said FNV official Cihan Lacin. “At least 3,500 employees will soon have to apply for a new job within their own company.” Earlier this year, both FNV and CNV threatened strike action in response to the reorganization plans.

Lacin said FNV would not accept the company’s timeline. “If it’s up to management, they’ll begin implementing this new plan starting in October. We strongly disagree and will be discussing our next steps with our members in the very near future,” he told De Telegraaf.

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