Arrium Limited (ASX:ARI) will cut 120 jobs at its Waratah base in Newcastle.
As part of a restructure, by the steel and mining group, the cuts will be made by June this year.
The company says lower steelmaking requirements are behind the downsizing with demand for train wheels falling.
Meanwhile mining operations are up 54 per cent with sales of more than 3 million tonnes for the March quarter.
Arrium reported a net profit of $220.9 million in the first half of the 2014 financial year.
