Canada’s Algoma Steel has issued layoff notices to roughly 1,000 employees at its Sault Ste. Marie plant, with the changes scheduled to take effect on March 23, 2026. The company cited a combination of high U.S. tariffs on Canadian steel and long-planned structural changes tied to its transition to electric arc furnace (EAF) production.
The blast furnace and coke-making facilities are expected to close as Algoma accelerates its move toward more efficient, lower-emission EAF steelmaking. According to the United Steelworkers (USW), the cuts affect roughly one-third of the current workforce, including about 900 union members.
Union leaders noted that workforce reductions were anticipated as early as 2022 contract negotiations. Mitigation plans, including a trades-helper program, are in place, though community leaders warn that Sault Ste. Marie must prepare for a permanently smaller industrial footprint as the EAF project moves toward commissioning in early 2026.
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