According to the company's statement, the outlined transformation programme "is needed to ensure the business can thrive despite severe market headwinds which have led to a sharp decline in profitability. At the same time, it aims to secure the foundation for investments required to accelerate innovation and the company’s journey towards carbon-neutral steelmaking".
The measures also include "Increasing sales of higher-value steels by improving product mix and customer focus" and the "reduction of procurement costs through smarter sourcing and strengthening cooperation with companies within the Tata Steel group".
According to the statement, the job cuts will affect about two-thirds of the company's staffers in Europe which "are expected to be office-based roles".
India's Tata Steel is one of Europe's leading steel producers with plants running in the Netherlands and the United Kingdom and other facilities across the EU.