Canada
December 1, 2025
Algoma lays off workers, slates BF closure amid US tariff woes
Written by Ethan Bernard
Canada’s Algoma Steel announced ~1,000 layoffs on Monday due to disruptions caused by the US tariff situation.
Due to market pressures, the Sault, Ste. Marie, Ontario-based steelmaker is bringing forward the closure date of its blast furnace and coke-making operations to early 2026.
“Algoma will transition to electric-arc furnace (EAF) steelmaking at that time, a year earlier than previously anticipated or planned,” an Algoma spokeswoman said in a statement to SMU.
“As part of the closure of its blast furnace and coke-making operations, Algoma has made the difficult decision to issue approximately 1,000 layoff notices today, effective in 16 weeks on March 23, 2026,” the spokeswoman added. “The transition is necessary to protect Algoma’s future in the face of these extraordinary and external market forces.”
She cited the significant impact of US tariffs in the “highly integrated” North American steel market.
The spokeswoman noted the tariffs have “fundamentally altered the competitive landscape and sharply limited our ability to access the US market.”
Recall that current Algoma CEO Michael Garcia said at the end of October that he is retiring at year’s end. Current President and CFO Rajat Marwah will assume that role on Jan. 1.
Also, last month, the company closed on $CA500 million in government loans as it navigates its EAF transition.
