Corus to Axe 3,500 Jobs to Deal with Recession

LONDON (AP) -- Steel giant Corus said Monday that it will cut 3,500 jobs around the world, with 2,500 jobs going in Britain alone, in an attempt to shore up its finances which have been battered by the sharp fall in global demand.

Corus, owned by Indian firm Tata, announced a series of cost cuts including mothballing a mill in South Wales and restructuring several parts of its business..

The company said it will try to achieve the job losses through voluntary redundancies. The job cuts, along with other measures, should help raise operating profits by more than 200 million pounds per year.

Company spokesman David Litterick said talks with the British government about providing help to the newly unemployed are ongoing.

"We are still hopeful that something will be agreed," he said.

The British workers were given the grim news in a series of meetings earlier.

John Wilson, senior officer of the GMB union, said this is "a body blow" for manufacturing in Britain.

"It is essential that the UK Government offers this industry the same support being offered to the banking sector because, just like banks, steel is the bedrock of our economy," he added.

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