U.S. Steel Cuts Non-Union Jobs as Part of Restructuring

U.S. Steel commented on the layoffs in the following statement:

“Following the announcement of our new operating structure on Oct. 8, leaders examined organizational structures, work performed, and spending to find opportunities to more efficiently execute our strategy. At the same time, we’ve been battling challenging market conditions, which means we need to truly become a leaner, more efficient organization faster. As part of this process, we are taking the difficult step to eliminate a number of non-represented positions in the United States. Unfortunately, this was a necessary step in the execution of our strategy, which will deliver cost and capability differentiation to create a world competitive ‘best of both’ footprint. It’s always difficult when we have to say goodbye to valued colleagues, but these moves will allow us to better manage our resources amid challenging market conditions.”

U.S. Steel reported a net loss of $84 million for the third quarter, but has secured approximately $1.1 billion of incremental financing to support its growth projects, including the acquisition of Big River Steel. The company has repeatedly emphasized the need for flexibility to accomplish its “best of both” strategy” as an integrated BF and EAF steel producer.