Algoma Steel has issued layoff notices to approximately 1,000 employees at its Sault Ste. Marie, Ontario facility, citing economic pressure driven by recently imposed U.S. tariffs.
The company confirmed the move in a written statement, saying the layoffs will take effect in 16 weeks on March 23, 2026.
The announcement comes as Algoma prepares to shut down its blast furnace and coke-making facilities and transition to electric arc furnace technology, a shift the company had previously scheduled for later but says it has now accelerated.
"This transition is necessary to protect Algoma’s future in the face of extraordinary and external market forces," the statement said, adding that “unprecedented tariffs imposed by the United States” have reshaped the competitive landscape for Canadian steel producers.
Algoma recently secured $500 million in combined federal and provincial loans to help stabilize operations while the transition takes place.
Algoma has received $400 million from the federal Large Enterprise Tariff Loan program and $100 million from Ontario to help the company respond to tariff impacts and shift its operations.
CTV News reported Ontario Trade Minister Vic Fedeli said the province will provide support programs for affected workers.
“We are activating a local POWER (Protect Ontario Workers Employment Response) centre to provide enhanced supports for impacted workers, including retraining programs to get people into new jobs as quickly as possible,” Fedeli said in a statement.
He said Ontario’s Buy Ontario Act prioritizes the use of Ontario-sourced steel in public procurement and called on the federal government to accelerate domestic procurement of steel for national infrastructure and defence projects.
Algoma said the layoffs reflect the need to ensure long-term financial viability. The company said it will focus in the short term on supporting affected employees while continuing its transition to new furnace technology.