Algoma Steel has announced the issuance of 1,000 layoff notices to employees at its Sault Ste. Marie, Ontario plant. The decision to issue the layoff notices comes as the company closes its blast furnace and coke making operations. The layoff notices will take effect in 16 weeks on March 23, 2026, as stated in an email from the company.
The company emphasized that the closure and layoffs are essential to safeguard Algoma’s future in response to significant external market pressures. They also expressed a commitment to advocating for a competitive and equitable trading environment for Canadian steel amid what they described as unprecedented tariffs imposed by the United States.
The transition at Algoma Steel involves shutting down the blast furnace and coke-making operations and shifting to an electric arc furnace earlier than initially planned in 2026. This move was prompted by the need to adapt to changing market conditions and protect jobs in the face of challenging tariffs.
Mike Da Prat, the president of United Steelworkers Local 2251, disclosed that 900 of the union’s 2,800 members at Algoma Steel received layoff notices. He mentioned ongoing uncertainties about the permanence of these job cuts, noting that discrepancies in the layoff list and concerns raised by members are being addressed. Da Prat acknowledged the expected job reductions resulting from the transition to an electric arc furnace but highlighted collaborative efforts between the union and the company to implement mitigation strategies, such as a trades helper program for affected workers.
Bill Slater, president of the office and professional union at Algoma Steel Local 2724, indicated that approximately 150 of their members could face layoffs, with expectations for adjustments in these figures. Slater expressed concerns about the significant impact of simultaneous layoffs on the workforce and revealed that his request to tie the government loans received by Algoma Steel to employment figures was declined.
The layoffs at Algoma Steel are anticipated to affect about one-third of its workforce, signaling a notable reduction in the manufacturing industry in Sault Ste. Marie. The company had recently secured governmental loans totaling $500 million to mitigate the impact of tariffs and preserve jobs.