Tata Steel, one of the largest companies of the Tata group is set to lay off thousands of employees. Tata's plant in Europe is in financial crisis and around 3,000 employees are expected to bid farewell.
Tata Steel will close two blast furnaces in the UK. The plants are located in Port Talbot Steelworks. According to reports, 3,000 jobs are expected to be lost.
Tata is yet to officially clarify regarding the news. However, sources reveal that Tata may announce the closure of the blast furnace today. The workers' union has not commented.
The company has also held talks with trade unions to close the plant before taking the decision. The trade unions are also not ready to comment on the issue. The company is facing difficulties in financing the operation of green metal production. Thousands of employees could be laid off due to operational issues.
Tata's decision is significant, especially given the fact that the British government was providing government support to keep the company running and to save employees from being laid off. At the end of last year, the government had provided around Rs 5,300 crore to the unit.