Algoma Steel to lay off over 1,000 workers amid shift to electric production

Major Layoffs at Algoma Steel

Algoma Steel Group Inc., one of Canada’s major steel producers, announced that it will lay off more than 1,000 employees as part of its plan to shut down traditional blast-furnace and coke-oven operations in Sault Ste. Marie, Ontario. The company is accelerating its transition to electric-arc furnace steelmaking, which uses recycled scrap metal and electricity instead of coal, aiming to reduce carbon emissions significantly.

Transition to Electric Production

The shift to electric-arc furnaces represents a major step in Algoma’s modernization effort. This technology requires fewer workers but offers lower operating costs and a more sustainable production process. The new system is expected to be operational in 2025, aligning with global decarbonization goals and Canada’s environmental commitments.

Impact on Workers and Community

The layoffs affect approximately a quarter of Algoma Steel’s workforce. Local unions and community leaders expressed deep concern over the economic fallout for Sault Ste. Marie, where Algoma has been a major employer for decades.

“This is a devastating blow to families who’ve built their lives around the steel plant,” said a representative from the local union.

Algoma said it will provide transition support and retraining opportunities for affected employees.

Industry and Government Response

Industry experts see Algoma’s move as part of a broader trend in North America’s steel sector toward greener technologies. The federal and Ontario governments have jointly provided funding for Algoma’s low-carbon transition project, emphasizing its importance to Canada’s climate objectives.

Author summary: Algoma Steel will cut over 1,000 jobs as it replaces coal-based production with electric-arc technology, reflecting a wider steel industry shift toward lower emissions.

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The Globe and Mail The Globe and Mail — 2025-12-01

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