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Tata Steel to cut 65 jobs at Wednesfield plant amid losses

By Richard Guttridge | Wednesfield | Business | Published:

Tata Steel is to axe more than 60 jobs at its base in Wednesfield as part of a restructure aimed at halting losses at the struggling business.

Tata Steel is to cut 65 jobs

Bosses said the move was crucial for the "long-term sustainability" of the Steelpark site, which employs 750 people.

The steel giant said all four of its businesses based in Wednesfield were making a loss and that action was needed if the situation is to improve.

A "marked deterioration in the market" has been blamed for the current troubles.

A total of 65 jobs will go, made up of 26 office staff and 39 from the "shop floor".

A restructure will create a single organisation at Steelpark with the aim of delivering a "sustainable future for Tata Steel and its employees".

The firm said it was enter into consultation with workers and hoped the job losses would be met through voluntary redundancy or redeployment elsewhere in the business "where possible".

A letter to staff, seen by the Express & Star, said: "Over the last six months we have also seen a marked deterioration in the market, most notably in the automotive industry and increasingly in construction.

"All four of our businesses at Steelpark - Automotive, Profiling, Slitting and Light Gauge Decoiling - are now loss-making.

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"This is a situation we cannot allow to continue for the long-term sustainability of our site. We need to be both better at what we do, but also be more efficient."

It continued: "We are proposing to create a single Steelpark business with a functional organisation for the sales and operational activities across both Steelpark and Round Oak Rail.

"The new organisation will replace the existing business unit structure and will deliver cost savings by reducing duplication and increasing flexibility across the sites.

"The decision to reduce our headcount has not been taken lightly and has only been taken after a thorough strategic review of our business. We need to make this structural change in our business costs and our performance in order to be a sustainable business."

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A Tata spokesman said: “We have informed employees at our Steelpark steel distribution centre of plans to merge the four operating businesses on site into a single unit.

“These proposals are aimed at improving the focus and competitiveness of the business while providing a more flexible service for customers.

“The plans would reduce duplicate roles at Steelpark and regrettably lead to the loss of 65 jobs at the site."

It comes after Tata Steel announced last year it was looking to sell off two of its non-core Black Country businesses.

Tata Steel also employs 450 people in Brierley Hill and also has a service centre at Horseley Fields and Firsteel in Brockhurst Crescent.

Richard Guttridge

By Richard Guttridge
Investigations Editor - @RichG_star

Investigations Editor for the Express & Star.

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