Tata-owned steel giant Corus has decided to axe 400 jobs at its distribution unit due to global economic downturn.

The proposed job cuts will be spread across United Kingdom, comprising 100 in the West Midlands, around 100 in North Wales, 50 in South Wales and 50 in Leeds.

The company stated that its distribution business had been operating in an unstable and irregular market since the start of the year.

The company said, “The impact and continuation of the global economic downturn is having a major effect on steel customers in the automotive, construction and plant and machinery markets. Since September, the business has seen a significant decline in demand.”

“As a result, Corus Distribution has introduced a series of actions to reduce expenditure on transport, consumables, energy and other discretionary spending. However, these actions alone will not be sufficient to offset the decline in the market,” it added.

The company also said, “Corus Distribution is committed to ensuring it will do everything possible to assist those people leaving the business, and will be putting in place a range of support services designed to help them through this difficult time.”

Corus Distribution hires 2,400 workers at 36 different in Britain and Ireland.

The company also said that it will start an immediate consultation with workers and will try to achieve the job losses through voluntary redundancy.