Internal restructuring
Moravskoslezsko; Moravskoslezsky;
Location of affected unit(s)
Manufacture Of Basic Metal And Fabricated Metal Products
Manufacture Of Basic Metals
24.52 - Casting of steel

3,500 jobs
Number of planned job losses
Job loss
Announcement Date
16 January 2006
Employment effect (start)
Foreseen end date
30 September 2009


During the first two months of 2006 the largest steelworks in the Czech Republic, Mittal Steel Ostrava, employing 8,900 people, announced it would dismiss from 600 to 700 employees by the end of 2006.

On 14 July 2006 the number of redundancies was increased up to 1,000 people by the end of September 2006. The restructuring was carried out due to the profit decline caused by the reduction in demand and the capacity restriction of rolling mills by 2007 imposed by the EU. Workers who resigned voluntarily were given generous compensation from 12 to 32 average monthly wages depending on their age and tenure.

On 20 September 2006 the company announced a further massive redundancy plan that involves additional 2,500 job cuts within the next three years. Trade Unions understand the restructuring change and support retraining programmes for dismissed workers.


  • 20 September 2006: Hospodárske noviny
  • 16 January 2006: Hospodárske noviny
  • 16 February 2006: Hospodárske noviny
  • 20 September 2006: Lidové Noviny


Eurofound (2006), Mittal Steel Ostrava, Internal restructuring in Czechia, factsheet number 62958, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/62958.