Algoma Steel has announced the issuance of 1,000 layoff notices to employees at its Sault Ste. Marie plant in Ontario. The decision to lay off approximately 1,000 workers in 16 weeks on March 23, 2026, is part of the company’s move to close its blast furnace and coke making operations. This strategic shift is deemed necessary to safeguard Algoma’s future amidst significant market challenges, with the company advocating for a fair and competitive trading environment for Canadian steel.
The company attributed the layoffs to the impact of “unprecedented tariffs imposed by the United States,” which have significantly altered the industry’s competitive landscape. The steel mill had already planned for some job cuts as it transitions to an electric arc furnace earlier than initially scheduled in 2026.
Union president Mike Da Prat, representing a majority of Algoma Steel’s workforce, disclosed that 900 members received layoff notices. Despite uncertainties regarding the permanency of these job cuts, Da Prat mentioned ongoing efforts between the union and the company to mitigate the impact, such as implementing a trades helper program for displaced workers. He acknowledged the inevitable reduction in manufacturing jobs in Sault Ste. Marie, expressing concerns about the local job market’s capacity to absorb the layoffs.
Similarly, Bill Slater, president of the office and professional union at Algoma Steel Local 2724, anticipates around 150 members facing potential layoffs, highlighting the significant impact of such a large-scale workforce reduction. Slater also mentioned his request for government loans to be linked to employment numbers, a proposal that was ultimately declined.