Yahoo Finance Sources: Tata Steel To Axe 1,050 Jobs In UK
Tata Steel (BSE: TATASTEEL.BO - news) is to axe 1,050 jobs, in another bitter blow to Britain's struggling steel industry.
The Indian-owned company will cut 750 jobs at its Port Talbot plant in Wales and another 300 jobs at other sites across the UK, Sky (LSE: BSY.L - news) sources say.
It (Other OTC: ITGL - news) is expected to announce the latest round of job cuts today, as part of an overhaul of its UK operations.
Tata, which cut 1,200 jobs at its sites in Scunthorpe and Lanarkshire in October, would not confirm the news.
A spokesman told Sky News: "We have no announcement to make at present. If we have significant news we would always tell our employees first."
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Port Talbot is Britain's biggest steelworks, in terms of both workforce and output, and employs around 4,000 people in the town.
Many contractors and service firms rely on the plant, so the cuts will have a knock-on effect across south Wales and beyond.
Port Talbot MP Stephen Kinnock described the news as a "massive blow".
"The Tata steelworks in Port Talbot is the beating heart of our community and our economy, and indeed plays a massive role across Swansea bay and Wales and the rest of the United Kingdom," he told Sky News.
The Department for Business, Innovation & Skills (BIS) described the reports as "deeply concerning".
The cuts come as the UK steel sector continues to be badly hit by a flood of cheap imports from China.
It costs Tata the same amount to pay a British employee to make steel as it does to buy the same amount of steel from China, industry sources have told Sky's West of England correspondent Siobhan Robbins.
"Employees in Wales have since Christmas been aware that some sort of survival plan was being thought of because it was being reported the plant was losing £1m a day for months," she added.
"And some will hope that if these job cuts come it will be a way of Tata ensuring the long-term survival of the plant.
"But clearly for those who may tomorrow hear their jobs are at risk, it is an extremely difficult time."
Tata Europe employs 17,000 people in the UK.
A BIS spokesman said: "While this remains unconfirmed by the company, these reports are deeply concerning and this must be a worrying time for the workforce.
"The Government continues to engage closely with Tata on how we can help during this difficult period.
"The Government has taken clear action to help the industry, through cutting energy costs, taking action on imports, government procurement and EU emissions regulations, meeting key steel industry asks (Other OTC: UBGXF - news) ."
