Analysts assess that these job cuts could contribute about EUR 180 million to the overall cost-saving mark of Tata Steel Nederland of EUR 500 million by FY26.
1,600 Jobs on the Line as Company Targets Cost Savings
Tata Steel Nederland is facing scrutiny from De Unie, a key Dutch labour union representing white-collar workers, over its recently announced transformation plan. The steel giant revealed plans last week to eliminate approximately 1,600 jobs across management and support roles, a move aimed at reducing fixed costs, boosting production efficiency, and realigning its portfolio in light of evolving market demands and EU environmental regulations.
The reorganisation is expected to contribute around €180 million to Tata Steel’s broader €500 million cost reduction target by the 2025-26 fiscal year.
Union Questions Viability of Leaner Structure
In response, De Unie negotiator Hans Korver raised concerns about the feasibility of managing the company effectively under the proposed leaner structure.
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“The main question, of course, is whether you can still lead your organisation effectively with 1,600 fewer people. What makes this new structure workable?” Korver told Moneycontrol.
The union, in a letter dated April 14, has urged Tata Steel to implement a hiring freeze — except for critical production roles — and to focus on internal redeployment to fill current vacancies.
Green Steel Transition Adds Complexity
Korver also emphasized the importance of the company’s ongoing green steel transition, which is reportedly part of seven potential scenarios evaluated in a 2023 report. The Green Steel plan, seen as the most promising, holds both political and strategic significance, but Korver noted that external stakeholders — especially financial institutions — will expect more than political backing.
“Banks will demand a proper plan for a better organisation. So that keeps pressure on the 1,600 jobs, but also keeps pressure on ensuring it’s a good, solid plan,” he said.
Stakeholders Watching Closely
Tata Steel Nederland’s restructuring comes amid broader efforts to align with climate goals while remaining competitive. However, the union’s concerns highlight the tension between cost-cutting measures and maintaining operational resilience, especially as the company seeks public and private support for its long-term transformation.
