The share price slid to R2.87 on the announcement, closing the day at R2.91.
However, the group said the final outcome and number of positions affected was subject to a formal consultation process. In a trading update, it said the South African steel industry continued to face significant challenges due to the difficult domestic economic environment.
“Certain costs that are not within the company's control - such as high electricity, rail, port and primary raw material costs - have contributed to these challenges,” the group said.
As a result, Amsa had embarked on several initiatives to improve efficiencies and address expenditure that was within its control.