Another 250 jobs will be cut from OneSteel's Whyalla Steelworks operation in South Australia in an attempt to cut costs.

The company said the cuts would see about another 200 jobs lost, and about up to 50 contractors.

The cuts are expected to take place over the next six to eight months.

"Labour costs are the largest proportion of the steelwork's production costs. To achieve our target, it is necessary that we further reduce these costs," a statement from the company said.

The new cuts comes after the company announced it would axe 55 positions at the site in October and 600 jobs in January from its Southern Iron operation, south of Coober Pedy.

In October parent company Arruim announced it had started two years of cost cutting to save $100 million because of low commodity prices.

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According to today's announcement there will be "some changes to shift rosters and operating hours" and the company has identified $60 million of its cuts target.

Chief executive of the company's steel section Steve Hamer said the company was trying to reduce costs.

"It's unfortunately due to an oversupply of steel around the world as China floods the market with cheap steel, it's driving price down, it's driving margins down and we've had to respond as many steel companies have had to around the world," he said.

In a statement, he said the company was committed to the Whyalla business.

"While we have made good progress in identifying $60 million of our target, it's crucial that we achieve another $40 million of annualised savings and implement the already identified savings," he said.

"We are focussed on identifying and delivering the balance of our target as quickly as possible, and this will require the support of all our stakeholders.

"We remain committed to delivering a viable and competitive Whyalla business which benefits our stakeholders, including our local community and the state."

The company has flagged it is "now looking to work with both the South Australian and Federal governments on measures to achieve the remaining cost reductions".

South Australia's mining and manufacturing sectors have been hit hard with many companies announcing cuts.

The state's unemployment rate clawed back to 7.5 per cent in October from 7.7 per cent on the back of strong growth figures at a national level — but remains the worst unemployment rate in the country.

State Treasurer Tom Koutsantonis described today's job cuts as "terrible news".

He also attacked the Opposition's jobs plan describing it on Twitter as "lazy policy by a lazy party that has run out of ideas. Just a series of re-announcements".

Urgent action needed to turn state around: Steven Marshall

State Opposition Leader Steven Marshall has proposed an almost half-a-billion-dollar "jobs package" to turnaround the state's high unemployment rate.

Opposition Leader Steven Marshall has outlined a job stimulus plan at State Parliament. ( ABC News: Ben Pettitt )

It includes extending payroll tax relief for small business, reinstating a discount on the Emergency Services Levy (ESL) and a doubling of black spot road funding.

Mr Marshall said Tuesday's closure of the Leigh Creek coal mine and further cuts at the Whyalla Steelworks warranted urgent action.

"What we need to do is focus the Government on creating jobs for South Australia, growing the size of our economy," Mr Marshall said.

"In fact our state based revenue in this state is constrained by the fact that our economy continues to struggle."

Opposition spokesman Dan Van Holst Pellekaan said the Upper Spencer Gulf and outback region had lost nearly 1,500 jobs in last several months.

"Another 250 jobs in our region takes the total number of job losses from Arrium to 900, this is in addition to Alinta's job cuts of 438 plus many other jobs in the Upper Spencer Gulf and outback region," Mr Van Holst Pellekaan said.

He said the losses could force regional South Australians to move interstate for work.

Mr Van Holst Pellekaan said the Government was not supporting the north of the state in the same way it supported the north of metropolitan Adelaide.

"The Government found $60 million to support the northern suburbs of Adelaide with regard to the imminent closure of the Holden factory.

"We have already lost nearly as many jobs in the north of the state as Holden will lose in two years' time. "