British Steel confirms 'cost cutting' amid rumours of sweeping job losses
British Steel has confirmed it is considering "cost cutting" following reports the company is to axe hundreds of jobs.
The Chinese-owned manufacturing firm is said to be planning 300 job losses from the coke ovens, with another 600 to 900 being "optimised". British Steel's plant in Scunthorpe would bear the brunt of the cuts, unions have said.
It comes as ministers consider a multimillion-pound rescue package for the struggling business.
In its first public comments since job losses were first rumoured, the company confirmed it was looking at making cuts.
A spokesman said: "Unfortunately, like many other businesses we are reluctantly having to consider cost cutting in light of the global recession and increased costs.
"We have discussed this in preliminary talks with the trade unions in which we shared the challenges we face.
"We look forward to working closely with them to ensure a long-term safe and sustainable future for the company, thousands of employees and many more in people in our supply chain."
The company has refused to comment on the details of its plans, or confirm whether they include redundancies.
Last month it was reported that Chancellor Jeremy Hunt was close to signing off on a support package, which could funnel around £300 million to British Steel, with an "equivalent" sum going to fellow manufacturer Tata.
It is unclear what the latest threat of redundancies could mean for this negotiation.
On Thursday the government urged British Steel to continue discussions over a "generous package of support".
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Business minister Nusrat Ghani, responding to an urgent question, told the Commons: "While we all recognise (Vladimir) Putin's illegal invasion of Ukraine has created challenging global trading conditions for steel, it's very disappointing that British Steel has chosen to take this step for its employees while negotiations with Government are ongoing."
Ms Ghani added: "I would encourage the company to continue discussions with us to reach a solution. I can indeed confirm the Government has put forward a generous package of support which we believe, combined with shareholder action, would put British Steel on a sustainable and decarbonised footing."
Holly Mumby-Croft, the Conservative MP for Scunthorpe, told the Commons said British Steel's plans were "unacceptable in every possible way".
She said: "This is not a way to behave, it sends entirely the wrong message and breaches the spirit of negotiations, which I believe are the result of a level of Government focus on steel and its wider issues, including energy and carbon costs, that are genuinely encouraging for the industry.
"Hundreds of families in Scunthorpe are now worried sick wondering if and when they will lose their jobs."
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