Sault Ste. Marie, Ontario – Algoma Steel issued layoff notices to 1,000 employees on Monday, marking a significant shift in the future of steelmaking in the region. The layoffs, effective March 23, are a direct result of the company’s accelerated transition to an Electric Arc Furnace (EAF) steelmaking process and the impact of recent U.S. Tariffs, according to company statements.
The decision to expedite the transition, originally planned for completion later in 2026, comes after the imposition of “unprecedented tariffs” by the United States, which Algoma Steel says has “fundamentally altered the competitive landscape and sharply limited our ability to access the U.S. Market.” The company will close its blast furnace and coke-making operations as part of the change.
“As a result of these pressures, Algoma has been forced to conclude its long history as an integrated steel manufacturer,” the company stated. The layoffs are intended to protect Algoma’s future, according to the statement.
While the majority of the 1,000 layoffs will proceed as planned, some workers will receive extensions for training or to fulfill other necessary roles, according to Bill Slater, president of United Steelworkers Local 2724. “So not everybody will be laid off on Monday. The majority will, and a few will have an extension so that they can provide training and other things necessary,” Slater told SooToday.
Algoma Steel’s Vice-President of Human Resources and Corporate Affairs, Laura Devoni, confirmed that workforce reductions are occurring in phases. “A number of employees have already voluntarily departed since the announcement in December, with additional reductions occurring in the near term and over the course of 2026,” Devoni said.
Local 2724 represents 413 workers, including front-line supervisors, office and technical staff, shift coordinators, and planners. Algoma’s largest unionized group, Local 2251, represents 1,846 hourly workers.
The move to EAF steelmaking represents a major milestone for Algoma Steel, but it comes at a substantial cost to the local workforce. The company has not yet detailed the specific retraining opportunities available to affected employees, but a support centre for laid-off workers is scheduled to open on December 15.
