Tata Steel in IJmuiden is pressing ahead with a major reorganisation that will result in the loss of 1,600 full-time jobs, the company confirmed on Wednesday.

The company, part of Indian conglomerate Tata Steel Limited, said it remains committed to ensuring that its Dutch operations remain “one of the most competitive, successful and efficient” steel plants in Europe.

The restructuring will be carried out through a “comprehensive transformation programme” aimed at improving efficiency, cutting costs and optimising product mix and margins.

The company said the plan would result in the loss of around 1,600 jobs in management and support functions, and that changes would also be made to the local board.

Tata Steel, which is facing court action from environmental and health campaigners, posted a loss of €556 million in its 2023–2024 financial year. Steel producers in Europe have been particularly affected by high energy prices and are also expected to be impacted by new US steel tariffs.

The company said it has an “ambitious green steel transition plan”, which includes replacing one of the two blast furnaces, and it intends to go beyond legal requirements to improve environmental quality for residential communities around IJmuiden.

“We are working closely with the Dutch government and other stakeholders and are in constructive discussions about our joint investments in the green steel plan,” said Tata Steel chief executive Thachat Narendran.

“This transformation is a building block towards this future, where we ensure that Tata Steel Netherlands has the required robust operating and financial profile to become one of the best and most sustainable steel companies in Europe.”

The reorganisation plan has now been submitted to the plant’s works council for assessment.

Last year, MPs backed plans to give subsidies to Tata Steel to help pay for energy efficiency and counter-pollution measures, but were divided on what conditions should apply.

In December, trade union FNV and the GroenLinks-PvdA alliance told the government it must make haste with financial support to enable Tata Steel to comply with emission norms to prevent job losses and the decline of the country’s industrial base.