Stelco Holdings recently reduced its workforce by laying off 85 employees, as confirmed by union leader Ron Wells. Just a week before, the company had issued 90 layoff notices.
While the steelmaker, owned by a U.S. company, attributes its decision to lay off up to 500 workers in Hamilton and Nanticoke, Ontario, to the ongoing Canada-U.S. trade war, other factors such as technological advancements and shifts in demand are also contributing to the downsizing of the industry’s workforce.
Statistics Canada reports a decline in direct employment in Canada’s primary steel manufacturing sector from around 29,000 workers in 2003 to approximately 14,000 as of July this year.
Wells, who serves as the president of United Steelworkers Local 1005 and has been with Stelco for 47 years, recalls that the workforce at Stelco was around 14,000 strong when he first joined the company. He noted that modern steel production methods require fewer personnel, leading to a more streamlined operation.
According to U.S. regulatory filings, the total workforce of Cleveland-Cliffs, the parent company of Stelco and the largest flat-rolled steel producer in North America, decreased from about 30,000 employees to roughly 25,000 between the end of 2024 and 2025.
The company’s downsizing efforts included laying off approximately 600 employees in Dearborn, Michigan, due to reduced demand from North American automakers. This decision subsequently led to an additional 600 job cuts in Minnesota to align the company’s output with the decreased demand for raw ore.
In response to the imposition of tariffs on certain steel and aluminum imports from Canada by U.S. President Donald Trump, Stelco announced plans to lay off up to 500 workers at its Ontario facilities. This move has sparked a dispute between the company and the Canadian government regarding Stelco’s obligations under the Investment Canada Act to maintain a specific number of employees in Canada.
The steel industry in Ontario is facing uncertainty beyond Stelco, with Algoma Steel issuing layoff notices to around 1,000 workers last December, representing nearly a third of its workforce. The company attributed these layoffs to U.S. tariffs impacting its export competitiveness and its transition to more environmentally friendly and less labor-intensive production methods.
Moreover, ArcelorMittal Long Products Canada announced the permanent closure of its wire-drawing facility in Hamilton in mid-2025, citing economic challenges and increased steel imports as key factors.
Efforts are being made to address the influx of cheaper foreign steel imports affecting Canadian producers. Union leader Wells criticized the government for not doing enough to protect domestic steel producers and called for increased tariff-rate quotas to curb the competition from foreign steel suppliers.
Amid these challenges, a research firm’s forecast indicates contrasting fortunes for the steel industries in the U.S. and Canada. While U.S. steel production is expected to rise, Canadian producers are facing pressure on export volumes due to disrupted trade flows caused by increased tariffs.
Despite the uncertainties, Wells remains hopeful that Stelco will eventually recall the laid-off workers once the trade situation is resolved. He believes that the current layoffs are temporary and anticipates that a trade agreement will be reached, allowing affected workers to return to their jobs soon.
