British Steel to cut 400 jobs at its sties in the U.K., EU

LONDON, U.K. - In a move aimed at streamlining operations, British Steel has decided to cut almost 1 in ten jobs at its sites in the U.K. and elsewhere in Europe. 

The company, which has blamed a weak pound and euro for driving up costs, has blamed the rising costs, for cutting 400 jobs. 

The steelmaker has said that it was shedding almost ten percent of its 5,000-strong workforce.

It argued that the move was part of its efforts to streamline its operations and secure a long-term future. 

According to reports, this is the first time the company has decided to cut its staff since it received a fresh lease of life two years back.

Two years back, Greybull, an investment firm, bought the business for 1 pound from Tata Steel, which saved British Steel from collapse. 

Commenting on the company's announcement, the National Trade Union Steel Coordinating Committee said, “This announcement will come as a body blow to the workforce who have already made huge sacrifices to make the business sustainable."

Further, with British Steel's main steelworks based in Scunthorpe, the Labour MP for the town, Nic Dakin said the news was a devastating blow for workers.

Dakin said that the company's workers in the town have already done “everything asked of them” to avoid job losses.

He added, “They have taken a pay cut, seen their pensions change and worked hard to get British Steel on its way."

He also attacked the government for not helping the industry “level the playing field” following the Tata Steel crisis three years ago.

Dakin also pointed out that ministers had still not agreed a steel sector deal and noted, “As we leave the EU the government is not giving steel the priority it needs to be confident of a fair deal post-Brexit."