Canadian steelmaker Algoma Steel has initiated layoff notices for approximately 1,000 workers at its Sault Ste. Marie facility. According to the company’s statement released to the Canadian press, the company attributed the decision to the combination of high US tariffs and long-planned structural changes linked to its move toward electric arc furnace steelmaking. The layoff notices take effect on March 23, 2026.
The company stated that US tariffs on Canadian steel have “fundamentally altered the competitive landscape”, significantly affecting its financial performance. At the same time, the blast furnace and coke-making units are scheduled for shutdown as the new electric arc furnace (EAF) system comes online, a shift that has been anticipated for several years.
Mike Da Prat, president of the local branch of United Steelworkers (USW) of Canada, said that the job cuts impact about one third of the mill’s workforce, with 900 union members receiving layoff notices.
He noted that during 2022 contract negotiations it was already clear that EAF conversion would lead to “hundreds of job cuts.” The union and Algoma Steel have worked on mitigation plans, including a trades helper program for displaced employees, yet the president emphasized that the community should prepare for a permanently smaller industrial base.
Algoma’s transition to electric arc furnace steelmaking is now expected to occur earlier than initially planned, with the shutdown of legacy operations and the commissioning of the new EAF projected for early 2026.