Ontario-based Algoma Steel makes ‘difficult decision’ to issue 1,000 layoff notices

Reeling from high tariffs imposed by U.S. President Donald Trump, Algoma Steel confirmed Monday it has issued layoff notices to about 1,000 workers.

The company, based in Sault Ste. Marie, Ont., employs about 2,700 people. With its major buyers in the United States, the company was hit hard by the 50 per cent tariffs imposed last summer by Trump.

“The North American steel market is highly integrated, and Algoma Steel has been significantly impacted by the unprecedented tariffs imposed by the United States,” Algoma Steel spokesperson Laura Devoni said in an email.

“These tariffs have fundamentally altered the competitive landscape and sharply limited our ability to access the U.S. market. As a result of these pressures, Algoma has been forced to conclude its long history as an integrated steel manufacturer and close its blast furnace and coke-making operations in early 2026.”

Devoni said the tariffs are forcing the company to transition to its Electric Arc Furnace steelmaking a year earlier than previously planned.

“As part of the closure of its blast furnace and coke making operations, Algoma has made the difficult decision to issue approximately 1,000 layoff notices today, effective in 16 weeks on March 23, 2026,” she said.

“This transition is necessary to protect Algoma’s future in the face of these extraordinary and external market forces, and we will continue to advocate for a competitive and fair trading environment for Canadian steel.”

Federal, provincial assistance

In September, it was announced that the steelmaker would receive $500 million in federal and provincial loan assistance to help reorient its business to cope with the impact of U.S. tariffs.

The $400 million from the federal government will come from the Large Enterprise Tariff Loan program, with the province providing $100 million.

Bill Slater, president of United Steelworkers Local 2724, said Monday’s announcement was “devastating.”

“Sitting around the Christmas table knowing that your job is coming to an end will not be a fun thing to do,” Slater told CTV News.

“Now that this announcement has been made, hopefully the government will move forward on approving the funding for those programs ... we’re hoping to have an action centre set up here in the Sault by the end of January to support the workers when they’re laid off (at) the end of March.”

“It’s very devastating when you live in a community that doesn’t have a lot of job opportunities and you’re finding out that your job is going to end,” he added.

Help for workers

Ontario Trade Minister Vic Fedeli said the province will act to help 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.

“Our Buy Ontario Act is prioritizing Ontario inputs for government procurement, including Ontario steel. Recent federal government changes to tariff rate quota levels for steel will help to ensure Canadian companies use more Canadian steel.”

He called on the federal government to “speed up procurement to use Ontario steel to build pipelines, critical infrastructure, ships and other military and defence equipment.”

Sault Ste. Marie-Algoma MP Terry Sheehan said he is working to ensure help for the affected workers.

“I am in contact with federal government departments and agencies that will directly respond to the needs of impacted workers and expedite any federal services required during these difficult times,” Sheehan said in a statement.

“Our new government has already taken significant steps to strengthen protections and increase assistance for workers impacted by layoffs. I will continue to fight tirelessly for you, your families, and our community during these challenging times.”

Algoma said Monday the layoffs will help ensure the company is viable in the longer term. In the short term, their focus will be on helping the affected employees.

“We fully understand how unsettling this news is for our employees, their families, and the broader Sault Ste. Marie community,” Devoni said.

“We are committed to working closely with federal and provincial partners, union leadership, and community agencies over the coming months to provide resources, support, and transition assistance to all affected employees.”

CTV News will have more reaction to this story, including from union officials and local leaders.