Sudbury

Algoma Steel lays off 70 full-time employees

Algoma Steel has announced it is laying off about 70 full time employees, with a number of contract employees also affected by cost-cutting measures.

Another 80 to 90 employees will displace contract workers, company says

An Algoma steel sign welcomes visitors to the work site while a grey tuft of smoke rises over a brick office building.
In addition to the layoffs of 70 full-time employees, Algoma Steel officials say another 80 to 90 employees will displace full and part-time contract workers.  (Yvon Theriault/ Radio-Canada CBC)

Algoma Steel has announced it is laying off about 70 full time employees, with a number of contract employees also affected by cost-cutting measures.

In a news release Thursday, the company said the temporary layoffs are in response to COVID-19 market conditions.

"We have taken this difficult decision to prudently sustain our financial strength during this ongoing period of broad economic and market instability, as economies continue to be affected by COVID-19 and related measures," said Algoma Steel CEO Michael McQuade. 

Steel plants fall under the province's list of "essential" businesses, which has allowed some 2,000 steelworkers to stay on the job at the Sault Ste. Marie Steel mill. 

In addition to the layoffs of 70 full-time employees, the company said another 80 to 90 employees will displace full and part-time contract workers. 

"We recognize the impact of this decision on our employees, their families, and the community," McQuaid said.  

"Algoma Steel will continue to monitor market conditions closely, and may make further adjustments as the business may require."