Automation and Trade Tensions Drive Steel Job Losses in Ontario
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Stelco and Algoma Steel announce significant layoffs as U.S. tariffs and new technologies compress the Canadian workforce.
The Canadian primary steel manufacturing industry is facing a workforce contraction driven by a combination of trade disputes and technological shifts. As first reported by CBC Toronto, direct employment in the sector has dropped from nearly 29,000 workers in 2003 to approximately 14,000 as of July, according to Statistics Canada.
Reporting from CBC Toronto highlights that U.S.-owned Stelco is planning to lay off up to 500 workers across its Hamilton and Nanticoke, Ont. operations. Ron Wells, president of United Steelworkers Local 1005, noted that the company issued 90 layoff notices one week prior to laying off 85 employees. While Stelco attributes these cuts to the Canada-U.S. trade war—following a U.S. executive order applying tariffs of up to 50 per cent on certain imports—industry dynamics are also at play. Wells told CBC News that modern steel production is more streamlined and requires fewer people.
Similar pressures are impacting other producers. CBC Toronto reports that Algoma Steel issued layoff notices to roughly 1,000 workers last December, coinciding with a transition toward less labor-intensive electric-arc furnace production. Furthermore, in June 2025, ArcelorMittal Long Products Canada closed its Parkdale wire-drawing plant in Hamilton permanently. Jean-Philippe Grou, a spokesperson for the company, cited market conditions and increased steel imports as drivers for reducing their footprint.
The instability extends to the parent company of Stelco, Cleveland-Cliffs. U.S. regulatory filings show the Ohio-based producer's workforce shrank from about 30,000 to roughly 25,000 between late 2024 and late 2025. CEO Lourenco Goncalves attributed these cuts, which included 600 layoffs in Dearborn, Mich., to a drop in demand from North American automakers.
Industry Minister Mélanie Joly has stated that market changes do not excuse Stelco from its obligations under the Investment Canada Act, suggesting potential outcomes of negotiations could include forced divestiture or financial penalties.