Steelmaker Corus set to cut back on staff

Published on Sunday 25 January 2009 20:23

STEELMAKER Corus is understood to be planning significant job cuts this week in one of the worst hits for the already-struggling manufacturing sector.

The firm, which employs 24,000 people in the UK, including a number north of the Border at its Motherwell steel processing plant, is believed to be planning the cutbacks as part of a restructuring plan drawn up by outgoing chief executive Philippe Varin, who is due to leave the business in April following six years at the helm.

Duncan Harrod, a spokesman for steelworkers' union Community, told The Scotsman he expected the firm to make an announcement today, but said he did not believe the job losses would be as high as the 3,500 reported at the weekend.

Corus, which is owned by Indian industrial giant Tata Group, refused to comment on the expected cuts. A spokeswoman said: "Like most companies, we have been facing an unprecedented downturn in our markets. However, we cannot comment on speculation."

The Anglo-Dutch company, which was formed a decade ago from the merger of British Steel and Dutch firm Hoogovens, is Europe's second-largest steelmaker and the ninth largest in the world.