ArcelorMittal plans to cut jobs in Luxembourg

The agreement reached between the government, the company, and the labor unions calls for the layoff of up to 300 people

Global steel producer ArcelorMittal plans to reduce its workforce in Luxembourg, according to Paperjam.

Late last week, a new agreement titled “Lux2029” was signed between the government, the company, and the LCGB and OGBL labor unions — negotiations had been ongoing since October of last year.

The agreement provides for a reduction in the workforce in Luxembourg due to the difficult situation in the industry — currently, this involves about 300 positions.

To offset this measure, steps will be taken regarding early retirement and pension provisions, partial unemployment, voluntary resignations, internal transfers, and natural attrition, according to a government statement. A unit will also be established to facilitate the redeployment of such employees.

The reorganization is taking place amid challenging conditions for the European steel industry; Luxembourg’s steel sector is under pressure, particularly due to raw material prices and cheap imports, as well as geopolitical and macroeconomic factors. In this context, ArcelorMittal intends to adjust its internal organization and fixed-cost structure to enhance competitiveness. Luxembourg will remain the headquarters of the global steel producer.

At the same time, under the agreement, the group plans to invest €290.5–334.5 million between 2026 and 2029 in key projects aimed at developing its production sites, including €44 million for the maintenance of existing equipment. In addition, the parties will work to implement the “Train 2” reconstruction and modernization project in Belval — an initiative currently in the preliminary study phase. A number of projects related to the digitalization of production and business processes are also planned.

As a reminder, ArcelorMittal concluded consultations in February of this year regarding the closure of its Tailored Blanks division in Ghent, Belgium. The social plan was supported by 71% of employees, and the decision was to be approved by the board of directors.