The world’s largest steelmaker ArcelorMittal will lay off up to 570 workers at its plants in Luxembourg, citing the company’s long-term sustainability during the COVID-19 pandemic.
Roland Bastian, head of Luxembourg for ArcelorMittal, said in a press statement Thursday that the pandemic has made the steelmaker vulnerable.
While the company initially forecasted growth this fiscal year, the impact of the pandemic led to a net loss of $559mn in Q2 2020. ArcelorMittal is faced with several challenges, ranging from high input costs to softened demand from its consumer industries, the automotive and construction sectors. However, one of the biggest problems is the European Union’s green steel implementation, which is expected to cost the company between €45-65bn ($53-76bn).
Local labor unions have warned the steelmaker that restructuring operations due to the pandemic does not free it from its social responsibility toward employment in Luxembourg.
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