The newly announced transformation program for Tata Steel Netherlands aims to cut the vertical’s fiscal 2026 controllable costs by 15% when compared to FY25. The company aims to save costs amounting to €500 million in FY26 and an additional €50-60 million in FY27. The €500 million annualised savings will be realised from H2FY26, and the full benefit of program is to come in by FY27.
While this one-year program will address various parameters like raw material costs, product mix, repair and maintenance costs, yields, etc., one of the controllable costs Tata Steel has given more details about are employee costs. The program will lead to a removal of 1,600 jobs that will lead to a total cost savings of €180 million.