At a time when the commodity markets appear to be strengthen, Tata Steel have annouced plans to reduce their workforce at their Scunthorpe, Redcar and Teesside plants.
The job losses form a part of a restructure which also includes a £400 million investment in the region over the next 5 years.
Tata Steel currently employs 21,000 people in the UK and it once of the top 10 steel producers in the world. It employs around 60,000 people in overseas plants.
The general feeling in the community is that most jobs will be going to India to help cut the ever growing tax burden.
Tata Steel stock price has risen by 2.76% on the back of this news to 578.35p per share. Although 3 days ago Tata also announced that it was confident that it could win a contract to build the new greenfield airport in Jamshedpur in India. This forms a part of Tata Steel’s new corporate social responsibility program. Currently the nearest airtport is 3.5 hours away in Ranchi.