Anglo-Dutch steelmaker Corus has confirmed it is shedding ten per cent of its UK workforce after experiencing a massive fall in demand.
The Indian-owned company said it was cutting 3,500 jobs worldwide, 2,500 of them in Britain.
Corus, formed in a merger between British Steel and Hoogovens, currently employs 24,000 people in Britain and 42,000 worldwide.
After initial reports of the cuts claimed no plants would be closed, Corus said it would be "mothballing" its site near Newport and selling its stake in its Teesside plant.
As unions demanded urgent talks with company bosses, Philippe Varin, chief executive officer of Corus, said the company-wide restructuring was "essential for the future of the business".
"The company will keep its focus on priority areas such as training, research and product development, which, together with today's initiative, will ensure Corus is in the best possible shape to compete strongly in the future," he added.
Corus, Europe's second largest steelmaker, has been stung by a 40 per cent drop in global demand due to the ongoing economic crisis.
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