Stelco Holdings recently cut 85 jobs, as confirmed by union leader Ron Wells. The company had issued 90 layoff notices the week before. Although the U.S.-owned steelmaker attributes the layoffs to the Canada-U.S. trade war, advancements in technology and changing market demands are also contributing to the reduction in the workforce.
Statistics Canada reports a decline in direct employment in Canada’s primary steel manufacturing sector, dropping from nearly 29,000 workers in 2003 to approximately 14,000 workers as of July. Wells, who has been with Stelco for 47 years and is the president of United Steelworkers Local 1005, mentioned that the company’s workforce was around 14,000 strong when he first joined.
The shift towards a more streamlined process with fewer workers to produce steel has been noted by Wells, who emphasized the efficiency improvements in the industry. The total workforce of Cleveland-Cliffs, the parent company of Stelco and North America’s largest flat-rolled steel producer, declined from about 30,000 employees to roughly 25,000 between Dec. 31, 2024, and Dec. 31, 2025.
The job cuts at Cleveland-Cliffs, including layoffs in Dearborn, Michigan, and Minnesota, were prompted by soft demand from North American automakers and adjustments in raw ore output to align with reduced blast furnace demand. Stelco, facing up to 500 layoffs at its Ontario operations following U.S. President Donald Trump’s tariffs on steel and aluminum imports from Canada, is now embroiled in a dispute with the federal government regarding its obligations under the Investment Canada Act.
Apart from Stelco, other steelworkers in Ontario are also facing uncertain job prospects. Algoma Steel issued layoff notices to roughly 1,000 workers, attributing the decision to U.S. tariffs affecting its export competitiveness and transitioning to more environmentally friendly electric-arc furnace production.
ArcelorMittal Long Products Canada’s closure of its wire-drawing facility in Hamilton further emphasizes the challenges within the steel industry. Industry stakeholders are calling for measures to address the influx of cheaper foreign steel imports, with concerns raised about the impact on Canadian producers.
Wood Mackenzie’s latest forecast highlights the contrasting scenarios in the steel industry between the U.S. and Canada. While U.S. steel production is projected to increase despite shrinking domestic demand, Canadian producers are facing pressure on export volumes and capacity utilization due to disrupted trade flows.
Wells remains hopeful for the affected workers, believing that the layoffs are temporary and that a resolution to the trade situation will lead to their reinstatement. Despite the uncertainties, stakeholders are optimistic about the industry’s future outlook and the potential for a turnaround in the market.