Stelco Plans Up to 500 Layoffs in Ontario Amid Broader Canadian Steel Industry Decline
Stelco Holdings, owned by Cleveland-Cliffs, plans to lay off up to 500 workers in Hamilton and Nanticoke, Ontario. The cuts come as direct employment in Canada's primary steel manufacturing sector has halved since 2003, with other major producers also reducing workforces or closing facilities.
Stelco Holdings, a subsidiary of Cleveland-Cliffs, plans to lay off up to 500 workers at its operations in Hamilton and Nanticoke, Ontario. 
The company laid off 85 employees at the end of last week and issued 90 layoff notices the week prior.
Stelco has described the layoffs as a temporary consequence of the Canada-U.S. trade war. Three months before the announcement, U.S. President Donald Trump signed an executive order applying tariffs of up to 50 per cent on certain steel and aluminum imports from Canada. However, United Steelworkers Local 1005 leader Ron Wells suggested the cuts may be strategic moves intended to pressure the government into trade agreements or serve as political optics for the U.S. administration.
The job losses reflect a long-term contraction in the Canadian steel sector. According to Statistics Canada, direct employment in Canada's primary steel manufacturing industry dropped from nearly 29,000 workers in 2003 to about 14,000 workers as of July. Union leaders argue that Ottawa is not doing enough to shield domestic producers from cheaper foreign imports, while company executives point to soft demand and tariff disruptions.
Stelco president Paul Simon stated that imports of cold-rolled and coated steel accounted for 45 per cent of market share for those products. Other major producers have also implemented significant reductions. Last December, Algoma Steel issued layoff notices to about 1,000 workers—nearly a third of its workforce—coinciding with a transition to electric-arc furnace production. In June 2025, ArcelorMittal Long Products Canada permanently shut down its Parkdale wire-drawing facility in Hamilton.
Cleveland-Cliffs has simultaneously reduced its broader operations. The parent company's total workforce shrank from about 30,000 employees to roughly 25,000 between Dec. 31, 2024, and Dec. 31, 2025. It idled a blast furnace in Dearborn, Mich., resulting in about 600 layoffs due to soft demand from North American automakers, and cut another 600 jobs in Minnesota to align raw ore output with reduced blast furnace demand. 
Despite shrinking demand, Wood Mackenzie predicts U.S. steel production will rise about 4.5 per cent this year. In Canada, spot prices for galvanized steel are now at $1,800 a ton, an improvement from six months ago.