Tata Steel Europe has no option, but to cut jobs to curtail costs: Analyst

Tata Steel Europe's current production capacity stands at 12.5 million tonne and it has 21,000 employees

Tata Steel cutting nearly 3,000 jobs across its European operations may appear a strict measure but more lay-offs are needed in the current market conditions, given there are few options available to the company, analysts said.

“Tata Steel’s UK plant is Ebitda (earnings before interest, taxes, depreciation, and amortisation) negative. It certainly makes sense to have deep jobs cut rounds to reduce the employee cost at this plant, and eventually idle the unit,” said an analyst with a foreign brokerage.

Though the size of the recent job cut is not a confirmed figure, brokerages were of the view that further