Additional Layoffs at U.S. Steel
U.S. Steel's Gary Works (photo courtesy: The Times of Northwests Indiana)
Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowPittsburgh-based U.S. Steel Corp. (NYSE: X) has laid off an unspecified number of non-union employees at two northwest Indiana facilities as it continues to reduce its national workforce.
Our partners at The Times of Northwest Indiana report the steelmaker made its initial round of cuts last November at its Gary Works mill, the Midwest Plant in Portage, and other plants outside of Indiana. The company did not disclose at the time how many positions were lost then, nor during this layoff.
Inside INdiana Business checked with the Indiana Department of Workforce Development’s current list of Workers Adjustment and Retraining Notice notices, but it did not indicate an announcement from U.S. Steel. A company is required to file a WARN notice if it intends mass layoff of more than 50 workers at a single facility. A 60-day noticed is required to help workers prepare.
U.S. Steel spokeswoman Amanda Malkowski told The Times the latest round of layoffs was companywide and affected only employees who don’t belong to the union, typically those in managerial or professional positions.
Malkowski says these new cuts are part of previously announced organizational changes.
“Our enhanced operating model and organizational structure and the changes associated with them are necessary to accelerate our strategic transformation into a world-competitive organization, and better serve our customers,” said Malkowski. “We do not take these decisions lightly, and we have provided impacted employees with resources to aid in their transition.”
The company announced two weeks ago it had lost $642 million during the year, compared to net income of $1.1 billion the previous year. It also reported a fourth-quarter net loss of $680 million, compared to net income of $592 million during the same period a year ago. (click here to view the financial report)
The publication says the steelmaker continues to look to cut costs because of tough market conditions and low steel prices. It also had to contend with a slowdown of steel production in December when a flood, caused by a broken 36-inch water main, swamped a portion of the complex, idling three blast furnaces.
The company says it expects the first quarter of 2020 to be the “trough,” or low point, for the year due to the normal seasonality of its mining operations and lower first-quarter shipments of flat-rolled steel.