Severstal North America Inc. confirmed Thursday that the company will extend its layoff program by issuing temporary layoffs, both voluntary and involuntary, to salaried and hourly employees, in an effort to reduce operating costs during the current economic climate.
The layoff program, which began in December, affects personnel at the company's Warren, Ohio; Sparrow Point, Maryland; Dearborn, Michigan; and Wheeling, West Virginia flat rolled facilities. The number of layoffs will vary each week for each location, depending on production volumes, to match customer demand.
Melvin E. Baggett, vice president, human resources and company spokesperson for Severstal North America, said in a news release, "While temporary reductions of people are a difficult measure for us all, by controlling our operating costs in the short term we are acting to ensure that Severstal, its employees and the community are well placed to benefit when the market begins to stabilize."
Essar Algoma Steel, located in Sault Ste. Marie, Ontario, also announced employee layoffs this week. The Indian-owned flat rolled steelmaker announced that 130 layoffs will be issued and become effective on Sunday, January 11, warning that there could be additional layoffs if market conditions do not improve. Essar Algoma put its 3,500 member workforce on layoff notice in October 2008, though the company had been able to stave off any layoffs until now by eliminating overtime and canceling all sub-contractors working at the plant.