British Steel is preparing to cut as many as 2,000 jobs as the firm struggles under a £30m a month running loss, according to reports first published in The Times.
The Chinese-owned company is undergoing plans to overhaul operations as it is reportedly running between a £20m and £30m monthly loss.
It is also aiming to cut pollution levels at its sites.
Although the decision has not yet been finalised, the firm has started putting a cost-cutting initiative in motion with 2,000 jobs at risk – nearly half the workforce at its Scunthorpe site.
Jingye, which acquired British Steel in 2020 after the firm was placed into insolvency, is in ongoing conversations with the government about financial support for its plans to convert blast furnaces to electric arc furnace technology.
This transition to electric technology has been dubbed “green steel”.
The cost reductions could contribute to making this shift happen – placing British steel in a better financial position – and thereby receiving over £1bn in funding from Jingye.
British Steel was approached for comment.
