The restructuring follows a significant decline in demand for bar steel products.
Tata Steel employs 2,200 people at its Specialty Steels and Bar business in the UK, including 1,050 in Rotherham and 70 in Wednesbury.
“These proposed changes are a critical part of developing a sustainable and competitive bar business.
“Tata Steel is showing its commitment to making this strategy work by committing £2.75 million of investment for the bar business. We are investing in improvements to our steelmaking in Rotherham as well as to the final quality of our products.
“Over the coming weeks, our priority will be to help our employees through this difficult process and keep them up to date with the changes. We will do everything we can to provide them with support and assistance.”
More top news
Police have charged two people with murder after two teenagers died in separate fatal stabbings in Sheffield this week.
Two girls who forged a friendship after surviving the Manchester bombing have joined other survivors at a theme park for a special day out.
Police say they are extending the use of extra stop-and-search powers in Sheffield in a bid to tackle the city's knife crime problem.