Algoma Steel’s 1,000 Layoffs Signal Major Shift—and Strain—in Northern Ontario’s Job Market

Algoma Steel’s 1,000 Layoffs Signal Major Shift—and Strain—in Northern Ontario’s Job Market

Algoma Steel has issued roughly 1,000 layoff notices at its Sault Ste. Marie, Ont., plant as it prepares to shut down its blast furnace and coke-making operations and transition to an electric arc furnace in early 2026. The move, accelerated by a year, comes amid what the company calls “extraordinary” market pressures, including steep U.S. tariffs that have reshaped North American steel competitiveness.

The layoffs affect about one-third of Algoma’s workforce. Union leaders say around 900 United Steelworkers members and up to 150 office and professional staff received notices, though they caution that some numbers may change as errors are corrected. While job reductions were expected due to the technology shift, unions and the company have been developing mitigation strategies, including retraining programs.

Algoma has received $500 million in federal loans aimed at stabilizing operations during the tariff dispute, though unions say the funding should have been tied to employment guarantees. The cuts raise concerns for northern Ontario’s already limited labour market, where absorbing such a large number of displaced industrial workers may prove difficult.

Have you been laid off by Algoma Steel in Canada? Contact our employment lawyers today. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.

CBC News’ original article, “Northern Ontario steel mill issues layoff notices to 1,000 workers” was published in CBC News on December 1, 2025. Read the Full CBC News story.

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