Job cuts have started at BlueScope Steel and more are expected this year as the company battles tough trading conditions caused by the high Australian dollar and rising raw material prices.With a looming full-year loss estimated to top $100 million, BlueScope has returned to the type of workforce reduction measures it used during the global financial crisis.The Mercury understands management is trying to reduce employee numbers by 30 per cent in the finance, human resources, procurement and information systems divisions as the tough times bite at Port Kembla.In those divisions, the Mercury understands all workers aged over 50 are being offered early retirement in a bid to find the reductions.A BlueScope spokesman confirmed retirement offers, called the ‘‘early bird’’ scheme, were being made.‘‘The early bird scheme is work in progress and involves early retirement offers, as distinct from redundancies, being sent to eligible employees; mostly in service functions of the business,’’ he said.‘‘The offers are similar to what we did during the global financial crisis and provide a financial incentive for eligible employees to consider voluntary early retirement.’’BlueScope, already hurting from the effect of the high Australian dollar on export earnings, recently took analysts from major investment banks on a tour of the steelworks.Steelworks boss Noel Cornish briefed them on future operations.A report written by Deutsche Bank analysts Emily Behncke and John Hynd after the visit noted workforce reductions from 3400 in 2009 to 3100 last month. It said the company was being restructured to coincide with the July arrival of Mark Vassela, who will head a consolidated Australia and New Zealand steel business.The report said further reductions to the workforce were expected, and the steelworks may consider reducing steel production from the current 100 per cent capacity.‘‘Given the uncertain economic environment, BSL has reduced its workforce at Port Kembla from 3400 permanent employees to 3100 and contractors from 1500-2500 to 1000-1500 [from Sept 2009 to current],’’ the Deutsche report said.‘‘Further reductions are expected in 2HCY11 [the second half of the 2011 calendar year].’’The restructure is expected to result in the loss of sales and management jobs as divisions are combined.The BlueScope spokesman said the issue would have been raised in question-and-answer sessions rather than in Mr Cornish’s presentation.‘‘There is nothing in either of the presentations that refers to workforce reductions or reducing capacity ultilisation and while the topics may have been raised in general conversation within the context of analysts questions or speculation about the future, neither can be confirmed as committed actions,’’ the spokesman said.‘‘We have, however, announced on 10 March that there will be a new consolidated organisation structure to serve the Australian and New Zealand markets for flat steel, and this will result in fewer management positions.‘‘This is work in progress and the number of reduced management positions will not be known for some time.’’BlueScope often speaks of its need to reduce costs, and in February described the $55million half-year loss as ‘‘small’’.If the next ‘‘small’’ loss is of a similar size, the company will be more than $100million in the red for the 2010-11 financial year.The analysts’ reports were written before BlueScope’s earnings warning last Thursday.