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Steel News September 17, 2018 09:30:10 AM

British Steel Declares Massive Job Cuts Despite Robust Profits in Q1

Paul Ploumis
ScrapMonster Author
The decision comes soon after the company reported strong first quarter profits of £21m.
British Steel Declares Massive Job Cuts Despite Robust Profits in Q1

SEATTLE (Scrap Monster): One of the U.K’s major steelmakers, British Steel, has announced its decision to cut 400 jobs across its various facilities, representing nearly 10% of the company’s total global workforce. The proposed job cuts are part of an efficiency drive to keep the company updated with the constantly changing external environment. The decision comes soon after the company reported strong first quarter profits of £21m.

The jobs cuts will reduce the total workforce in managerial, professional and administrative categories at its facilities throughout the U.K, Ireland, France and the Netherlands. The company has not announced any specific deadline for implementing the jobs cuts, but aims to keep the period of uncertainty as short as possible. No single site will be closed, the company press release noted.

According to British Steel, the raw material costs have shot up significantly during the recent times, mainly on the back of fluctuations and recent weakening of the pound and the euro. The weakening of the pound and euro has resulted in huge jump in prices of raw materials, which are traded in dollars. Also, steel tariffs by the U.S administration had impacted exports to that country, although it accounts for only a small percentage of the company’s total steel products exports.

Meantime, British Steel Executive Chairman Roland Junck noted that the company will go ahead with investment in agile and efficient operations.