Tata Steel rises as Netherlands unit plans to layoff 800 employees

Shares of Tata Steel Limited traded 1.6 percent higher to Rs 123 in early trade on November 15 following its Dutch subsidiary’s announcement to cut 800 jobs, in a bid to enhance its market position and curb operational costs.

“The steel market has been in dire straits for some time now. In order to remain structurally competitive and profitable now and in the future, Tata Steel Netherlands is taking drastic measures, including a reduction of 800 jobs in IJmuiden,” the statement from the company read.

The stock has gained for the fifth consecutive trading session.

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The cut is slated to affect 500 permanent employees, and the remaining 300 job cuts will involve temporary workers and non-production-related vacancies.

This strategic move is part of the company’s broader effort to become a cleaner, greener, and more circular steel company. Despite the job cuts, Tata Steel Netherlands clarified that the reduction won’t result in a complete freeze on vacancies, acknowledging the ongoing need for technically trained personnel.

Tata’s steel factory in the Netherlands currently contributes approximately 7 percent of the country’s total CO2 emissions, making it the largest single polluter.

Although the company is collaborating with the Dutch government to transition to more sustainable steel production methods, a formal agreement on the required support has not been reached.

The company’s plan outlines a shift from coal and iron ore-based production to ovens powered by metal scrap and hydrogen by 2030, but specific financial details have not been disclosed.

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