Algoma Steel Issues Layoffs for 1,000 Workers Amid Turmoil

URGENT UPDATE: Algoma Steel has just announced the issuance of layoff notices to approximately 1,000 workers at its facility in Sault Ste. Marie, Ontario. The layoffs are set to take effect in just 16 weeks on March 23, 2026, as the company makes a significant shift in its operations.

In a statement released today, Algoma Steel confirmed, “As part of the closure of its blast furnace and coke-making operations, Algoma has made the difficult decision to issue these layoff notices.” This move is described as essential to safeguard the company’s future amid what they call “extraordinary and external market forces.”

The announcement comes as Algoma Steel prepares to transition to an electric arc furnace earlier than planned, a process that is now set to begin in early 2026. This shift aims to modernize operations but will unfortunately result in substantial job losses.

The steel industry is currently facing intense pressure due to unprecedented tariffs imposed by the United States, which have “fundamentally altered the competitive landscape,” according to Algoma’s statement. Mayor of Sault Ste. Marie, Ontario, has voiced urgent concerns, calling for “supports now” as the community braces for the impact of these layoffs.

In an effort to mitigate the fallout, Algoma Steel recently secured $500 million in government loans to help protect jobs despite the adverse effects of U.S. tariffs. The situation remains tense as local leaders and affected families await further developments.

With layoffs looming, the urgency for community support has never been more pressing. Algoma Steel’s decision underscores the volatile nature of the steel market and the challenges Canadian manufacturers face in an increasingly competitive global economy.

As the company navigates these turbulent waters, the implications for workers and the local economy are profound. Local stakeholders and families are urged to stay informed as this story develops.