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ArcelorMittal to cut 9,000 jobs

Source: PTI
November 27, 2008 19:16 IST
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The world's largest steel producer ArcelorMittal on Thursday said it will trim its workforce by up to 9,000 by offering a voluntary separation programme.

The focus would be primarily on non-production employees, particularly those in SG & A (selling, general and administrative) functions across the globe, a statement from ArcelorMittal said.

"These programmes may involve up to 9,000 employees, approximately three per cent of the total global workforce," it added.

Hit by global economic meltdown that has led to a steep slump in demand for steel, the L N Mittal-led firm said its move to launch a voluntary separation programme for employees is to help "achieve the company's stated aim of reducing SG & A expenditure by $1 billion in response to the current economic situation".

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The company said it is meeting its European Works Council today to present the voluntary separation programme to be launched across the group.

The steel major said it would run the programmes in "close collaboration" with stakeholders and in accordance with appropriate social considerations of the respective countries involved.

Commenting on the company's move, Bernard Fontana, Executive Vice President and Member of ArcelorMittals Management Committee with responsibility for Human Resources said: "This has been a very difficult decision for the company to take as all of our employees are extremely important to us. Sadly, however, the global economic reality means that it is only sensible to adopt such measures."

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