Reuters reported that US Steel's Serbian unit is to shed up to 250 administrative jobs as demand for its products has plummeted amidst the global economic downturn.

Mr Nemanja Brkovic spokesman for US Steel Serbia said that, under the provisions of a pact with trade unions, the lay off program will include between 150 and 250 jobs from our administrative departments.

He added that "We believe this is a necessary step to make a more efficient balance between our administrative and production personnel. The deal is fair and equitable for employees and it will help the company to remain competitive in the steel industry."

In April 20009, US Steel's foundry in Smederevo shut down both furnaces, its steel mill and another production line, while maintaining business in hot and cold rolling mills and sheet metal production. Earlier this year the company had already shortened its working week to 32 hours.

US Steel purchased Smederevo's bankrupt Sartid steel mill in 2003 in one of the first major privatization deals after the ousting of former president Slobodan Milosevic in 2000. It runs three production facilities in central, eastern and western Serbia, with a total workforce of 6,000.

(Sourced from www.reuters.com)