Tata Steel is about to announce a massive reorganization in which it will cut almost one in five jobs to save costs, insiders told the news wire ANP. That amounts to 1,800 people facing layoffs.

According to the news wire, Tata Steel staff have been told that an important announcement will be made today. A spokesperson for the steel factory in IJmuiden refused to comment.

Tata Steel is facing major financial headwinds and had to announce two major cutbacks last year due to cash flow problems. The company closed the previous financial year, which ran until the end of March 2024, with a loss of 556 million euros.

The European steel market is facing fierce competition from cheaper Chinese steel and now also has to deal with American import duties on steel of 25 percent, introduced last month. For the IJmuiden factory, the American market accounts for 12 percent of its sales.

The steel factory is also at risk of a multi-million euro fine and losing its permit for failing to meet the applicable emission standards. And the company is regularly under fire for putting the health of employees and locals at risk with its harmful emissions.

Tata Steel plans to convert its blast furnace complex near IJmuiden into a green steel factory, eventually replacing polluting coal with cleaner hydrogen to fuel its furnaces. The company is in talks with the government about support for the necessary investments