Metinvest announced plans for massive staff layoffs

The global crisis in the steel market has reached Ukraine: Metinvest Group has developed an action plan that will help the company overcome the difficult economic situation with minimal losses.

Netherlands mining and metallurgical holding with assets in Ukraine Metinvest B.V. (Metinvest) announced the crisis in the steel market and disappointing forecasts for further steel prices. In this regard, the company of Rinat Akhmetov and Vadim Novinsky has developed measures to optimize costs that will help the company overcome the "difficult economic situation with minimal losses."

In particular, Metinvest is forced to reduce the implementation of the 2019 investment program. The company will suspend the implementation of individual projects, except for the critical ones provided for by the Technological Strategy, and projects with significant environmental impact, the group said, which is at the disposal of NV Business.

The company will also be optimized to reduce fixed and administrative costs.
“There is no talk of mass layoffs in production: optimization measures will affect, first of all, the administrative staff and the management company. At the beginning of 2020, up to 30% of the administrative staff will be reduced, ”the statement says, specifying that Metinvest is developing joint programs with the city authorities to employ its employees.

The company will also suspend the recruitment of personnel for existing vacancies and limit the recruitment of people to the place of employees who have made a decision to dismiss, with the exception of critical professions. In addition, travel expenses will be reduced, and the renewal of vehicle fleets will be stopped.

“The metallurgical industry is cyclical, therefore Metinvest Group views the current crisis as a temporary phenomenon. Implementation of the developed action plan in combination with operational improvements will allow the Group to retain the maximum number of jobs and ensure the stable operation of its enterprises, ”the group is confident.

We would like to remind that in January 2016, due to a decrease in the cost of rolled metal in the world markets, the Metinvest Group also announced a reduction of administrative staff to 30% and other measures to optimize costs.

Metinvest is an international vertically integrated mining and metallurgical group of companies. The structure of the group includes mining and metallurgical enterprises in Ukraine, Europe and the USA, as well as a sales network in all key regions of the world. At the end of 2018, Metinvest received about 1.2 billion in net profit. In the first half of 2019, the group's net profit decreased by 39% compared to the same period last year, to $ 408 million.

The main shareholders of Metinvest