Thousands of jobs to go at Corus

January 25, 2009 International steel conglomerate Corus Group is to axe 3,500 jobs worldwide.

Up to 2,000 jobs are to be lost in the former British Steel plants in the United Kingdom. Owner Tata Steel employs 42,000 people worldwide, with 24,000 being in the UK. Corus did not comment on the report so far, but a union official told BBC News that the company would be making an announcement at 0930 UTC on Monday. The cuts would be part of long term restructuring plans made by soon to depart CEO Philippe Varin, which have been accelerated by the worldwide downturn.

Tata Steel's sister company Tata Motors is said by The Sunday Times to be considering 1,500 job losses at the UK's Jaguar Land Rover car manufacturer. It is not thought that any Corus plants in the UK will close outright.

Corus was formed from the merger of British Steel and the Dutch steelmaker Hoogovens, creating the ninth largest steel company in the world and the second largest in the European Union. The merger was uncomfortable and the company suffered severe financial problems in 2003. It later recovered and was bought by India's Tata two years ago.