ArcelorMittal, the world's largest steel producer, said yesterday that it may cut as many as 9 000 jobs across its global operations as it cuts back production in response to declining demand.

This would represent 3% of the group's total global workforce. The bulk of these job cuts are expected to be at the group's US operations, where up to 16% of the US headcount is reportedly facing retrenchment.

While local subsidiary ArcelorMittal South Africa, Africa's largest steel producer, said earlier this month that retrenchments of permanent staff were not currently envisaged, the company has reportedly terminated 2 000 contract jobs at its South African operations.

In line with an international mandate to reduce output in light of the global financial turmoil, ArcelorMittal SA has announced plans to cut back its production by 30%.

"This has been a very difficult decision for the company to take as all of our employees are extremely important to us," Bernard Fontana, executive vice president and member of ArcelorMittal's management committee with responsibility for human resources said in a statement issued by the holding company.

"Sadly however the global economic reality means that it is only sensible to adopt such measures," he said.

ArcelorMittal said it was yesterday meeting with its European Works Council to present voluntary separation programmes to be launched across the group.

This is to help achieve the company's stated aim of reducing selling, general and administrative expenditure by US$1 billion in response to the current economic situation.

The company said the focus of the exercise was primarily on non-production employees, in particular those in selling, general and administrative functions across the globe.

Source: I-Net Bridge