Tata Steel to lay off 2,800 workers in major UK restructuring.
Job losses at Port Talbot steel plant due to transition to greener steelmaking by Indian owner.
Tata Steel is planning to lay off 2,800 workers as part of a major restructuring of its UK operations, which is a significant blow to one of the country's once-largest industries.
The owners of the company based in India have informed the trade union leaders that they will proceed with closing two blast furnaces at the Port Talbot plant in south Wales, which is the UK's biggest steelworks, by the end of this year.
Tata, one of the leading steel manufacturers in the UK, is reportedly planning to switch to a greener form of steelmaking. This transition is part of a four-year plan that aims to make the company's steel operations more eco-friendly. The move will affect Tata's steel plants located in Wales and the Midlands, which together employ 8,000 people. The Financial Times first reported on this development on Wednesday.
Tata Steel to lay off 2,800 workers in major UK restructuring.
Tata is set to invest £750 million in the restructuring process, with an additional £500 million grant from the British government. The announcement of the restructuring comes after a crucial meeting between company executives and union leaders in London on Thursday, regarding the future of Port Talbot.
Unfortunately, it is anticipated that 2,800 employees will be made redundant, with Port Talbot bearing the brunt of the losses. This will be a significant setback for South Wales, as Tata is the primary private employer in Port Talbot.
Tata's management declined an alternate proposal from the unions to keep one blast furnace operational at Port Talbot until 2032 to minimize the number of layoffs. The management argued that the company is currently experiencing losses of approximately £1 million per day.