Tata Steel to slash 1,600 jobs at Dutch unit

Tata Steel Nederland will slash 1,600 jobs in management and support roles as part of a broad restructuring plan to improve operational efficiency and prepare for a transition to a more sustainable steel production, the company said on Wednesday.

The company, which has begun formal consultations with the Central Works Council and has notified trade unions about the potential changes, said this transformation strategy is expected to position Tata Steel Nederland for long-term competitiveness and environmental compliance.

It also said ongoing challenges in the European steel market, including geopolitical tensions, disrupted trade flows, and high energy costs, have put pressure on operating margins even though its near-capacity production levels of 6.75 million tonnes in FY25 at its IJmuiden facility.

According to Tata Steel, it is seeking to simplify its organizational structure by eliminating duplication, increasing standardisation, boosting automation, and enhancing accountability.

These changes are expected to impact 1,600 jobs, primarily in non-production functions. The company is also planning adjustments to the local management board.

The restructuring in the Netherlands comes after a similar overhaul in the UK, where Tata Steel closed blast furnace operations, cut 2,800 jobs, and began constructing a low-emissions electric arc furnace, supported by a £500 million government grant and a £1.25 billion investment.

As part of its decarbonization efforts, Tata Steel Nederland plans to replace one of two blast furnaces at IJmuiden with a direct reduced iron (DRI) unit and an electric arc furnace (EAF) by the end of the decade. The shift to DRI and EAF is expected to reduce annual carbon dioxide emissions by about 5 million tonnes.

The company is also engaged in discussions with the Dutch government for financial and policy support to facilitate this transition.

The IJmuiden facility, located near a deep-sea port and major industrial customers, is seen as a strategic site for green steel production given its infrastructure and proximity to offshore wind energy resources.

In addition to production changes, the company said it is implementing measures that exceed regulatory requirements to improve environmental conditions for nearby communities.

TV Narendran, managing director and chief executive officer (CEO) of Tata Steel Ltd., said, “We are working with the Dutch government and other stakeholders about our joint investments in the green steel plan. This transformation is a building block towards this future where we ensure that TSN has the required robust operating and financial profile enabling it to move towards its future as one of the best and most sustainable steel firms in Europe.”

Hans van den Berg, CEO of Tata Steel Nederland, stated, “We are taking a necessary step towards a sustainable and future-proof steel company.”

The company said it will carry out a comprehensive consultation process with stakeholders over the coming weeks to finalise the restructuring plan.