Brazilian steelmaker Companhia Siderurgica Nacional (CSN) is likely to lay off 3,000 workers at its Presidente Vargas mill in the city of Volta Redonda, in the state of Rio de Janeiro, according to a local union.
The union of the metal workers of Volta Redonda (SindmetalSF) said the reason behind CSN’s move is the expressive decline of sales the steelmaker has seen in the domestic market.
CSN hasn’t officially confirmed the intention of the layoffs, but said it’s keeping a dialogue with SindmetalSF.
CSN announced the move in a meeting with the union this week.
CSN is said to be looking to reduce the contracts it has with contractor companies by 35 percent, in an effort to reduce costs.