Corus yesterday announced plans to cut a further 2000 jobs. This follows around 3500 redundancies made in January this year as a result of restructuring and around 2000 job losses as a result of a plant being mothballed in May
Corus blamed the worldwide economic downturn for the cutbacks and in particular the decline in steel demand in Europe and America.
A statement from Corus said “Corus has already made significant cost savings with the support of its employee and union representatives since the downturn began, but several sites have suffered further deterioration in demand for their products.”
2,045 jobs are at risk. Some 1,500 of these are in the company’s production facilities: about 800 at the engineering steels sites, mainly Rotherham and Stocksbridge; about 370 in Corus Tubes in the UK and the Netherlands, and about 375 at downstream rolling and finishing plants in Teesside and Scotland. The company is also opening consultations on 500 white-collar jobs throughout the Corus Long Products division, the majority at Scunthorpe.
“We understand the difficulties these job losses are likely to cause our employees and their families. Any recovery in Europe appears to be some time off, so it is vital that we take this proportionate and responsible action now,” said Corus chief executive officer Kirby Adams. “We have to achieve long-term, sustainable competitiveness in a global and over-supplied steel market and are determined to do so by focusing on the quality of the products and services we offer our customers.”