U.S. Steel Corp. plans to temporarily lay off “less than 200” employees at its plant in Ecorse, Michigan, according to a letter sent to Michigan’s Workforce Development Agency.
“The purpose of this letter is to notify you of layoffs resulting from the company’s temporary idling of the operations of the B2 Blast Furnace and other operational adjustments at its Great Lakes Works facility. These adjustments are due to current market conditions and recent reductions in customer demand for the plant’s products,” Mark Tade, director of employee relations, wrote in the August 1 letter.
He said that “based on the current market conditions,” the total number of layoffs “will be less than 200.”
The company filed a Worker Adjustment and Retraining Notification on August 5, several outlets reported Tuesday.
In July, U.S. Steel Corp. temporarily cut 27 part-time jobs and expected to cut another 19 full-time jobs by August 1. Tade said in his letter that the additional layoffs will occur before the end of September.
“The layoffs are currently expected to be temporary, not permanent, but notice is being given at this time because the layoffs may exceed six months’ duration,” he added.
According to Crain’s Detroit Business, U.S. Steel’s stock price fell 25 percent over the past month to $11.28 at Friday’s close. The company’s second-quarter net earnings dropped to $68 million, down from $214 million in 2018’s second quarter.
As the Washington Examiner reports, President Donald Trump instituted a 25 percent tariff on imported steel, and signed an executive order in July requiring all federal infrastructure projects be built with at least 95 percent American-made steel.
Earlier this month, General Motors announced that it had officially closed its plant in Warren, Michigan, affecting 260 hourly workers, The Michigan Star reported.
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