British steel giant Corus, part of Indian conglomerate Tata Steel, will cut 400 jobs in its distribution business due to the global economic recession, which has led to a steep slump in demand for steel.
"It is true that we are to lose about 400 employees in the distribution business because of the global financial downturn," a company spokesperson told from London today.
Corus' distribution business employs nearly 2,400 people at 36 sites in the UK and Ireland.
"It (distribution business) has suffered the most due to the drop in demand for steel as also the ongoing de-stocking," the official said.
The spokesman added that Corus would consult its workers and have as many voluntary redundancies as possible.
Reeling under slackening demand and softening global prices, Europe's second-largest steel maker, Corus, has announced slashing its crude steel production by up to 20% over the next three months.
"We are taking appropriate steps to optimise our operations and protect our sound financial position over the next few months," Corus CEO Philippe Varin had said.
Corus, which produces about 20 mn tonnes of crude steel annually, said the company is to take decisive action to "mitigate the effect of the softening near-term steel demand outlook".
No change in production from the current levels, however, has been planned for the operations of the Tata Steel group outside Europe, it added.
Earlier last month, Corus acknowledged a slowdown in the steel demand, primarily in the UK and Southern Europe.
