United States Steel Corp has laid off about 3 per cent of its production workers in North America as a global economic slowdown cuts into demand for steel used in construction, autos and appliances.
The Pittsburgh-based company said yesterday the layoffs, effective immediately, include 500 employees in the US and 175 in Canada. All of the workers are union members.
"We regret having to do this, but it's necessary in order to control costs and maintain our competitiveness in this difficult environment," said John Armstrong, a company spokesman.
The cuts primarily reflect weaker demand for US Steel's flat-rolled steel, a sheet product used in autos, appliances and construction, Armstrong said.
The dramatic downturn in the economy has negatively affected US Steel's overall business, he said, and the company has already cut production to stay in line with customer demand.
Gerald Dickey, a spokesman for the United Steelworkers union, which represents at least some of the workers, said the layoffs were handled according to seniority. "Basically, business is slow," he said.
Last month, US Steel said its third-quarter profit more than tripled as higher prices led to record gains in its tubular and flat-rolled steel businesses. But it warned softening demand in North America and Europe would hurt results for the rest of the year.
US Steel, the largest domestically based steel company, said it cut production late in the third quarter to match declining order rates for its flat-rolled and European segments.
