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Algoma Steel Layoffs Crisis intensified on Monday as the company announced about 1,000 layoff notices. The Ontario-based steel producer continues to struggle under severe U.S. tariffs that reshaped its access to key American markets. Algoma employs roughly 2,700 workers in Sault Ste. Marie, and many depend on U.S. buyers. However, the 50 per cent tariffs imposed last summer by former U.S. President Donald Trump pushed the company into deep financial stress.
The Algoma Steel Layoffs Crisis now reflects a broader warning for Canada’s manufacturing economy. Company officials say the regional economy will feel the impact immediately.
Company Responds with Major Structural Changes
Algoma spokesperson Laura Devoni said the North American steel market depends on cross-border integration, yet the tariffs disrupted this balance. She explained that the new trade environment sharply reduced the company’s ability to sell into the United States. Devoni confirmed that Algoma will close its blast furnace and coke-making operations in early 2026. This shift ends a long era of integrated steelmaking at the company.
She also noted that Algoma will adopt Electric Arc Furnace technology earlier than planned. This transition aims to protect the company’s long-term viability during what she called “extraordinary and external market forces.”
Federal and Provincial Governments Step In
Both federal and provincial governments introduced financial assistance in September to support Algoma’s restructuring. Ottawa offered $400 million in loans through the Large Enterprise Tariff Loan Program, while Ontario contributed an additional $100 million. Officials say the funds will help the company adapt to the new trade reality and safeguard future jobs.
Ontario Trade Minister Vic Fedeli said the province activated a local POWER centre (Protect Ontario Workers Employment Response). This program will help workers access retraining opportunities and transition to new jobs quickly. Fedeli also urged the federal government to accelerate procurement for pipelines, infrastructure and defence equipment to boost the use of Ontario-made steel.
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Community and Political Leaders Mobilize
Sault Ste. Marie–Algoma MP Terry Sheehan said he is coordinating with federal departments to support affected workers. He emphasized that the government has already taken steps to strengthen protections for laid-off employees. Sheehan promised to continue advocating for families facing uncertainty.
Company Prioritizes Worker Support
Algoma says the layoffs aim to stabilize its future, yet the company stresses its commitment to workers. Management plans to collaborate with unions, government partners and community agencies to provide resources, financial guidance and transition support in the months ahead.
