The European arm of Tata Steel was forced to take this step after four international buyers pulled out from purchasing 80 per cent of the Teesside Cast Products plant's production for 10 years.
Announcing this development on Friday, Dec 4, Corus Chief Executive Kirby Adams said, "This is the last thing we wanted and we feel deeply about what is happening. Sadly, it has become unavoidable, through no fault of our people on Teesside."
The job cuts are 600 fewer than expected and there are reports that Corus will continue to employ about 2,000 people at its other operations in the Teesside area of northeast England.
In 2009, Corus already axed 2,500 jobs due to the demand slump led by the global economic crisis.