Cleveland-Cliffs Laying Off Hundreds Amid 'Weak' Auto Market

More than 1,200 workers across three sites received layoff notices in the past week.

Transcript

In a move that says just as much about the state of the steel industry as the automotive industry, Cleveland-Cliffs has confirmed that it will lay off 600 workers from its Dearborn Works facility in Michigan.

Cleveland-Cliffs is the 4th largest steel maker in the United States, and shipped out record volumes to automotive in 2023.

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Less than two years later, it says it will halt parts of its Dearborn operation, including the blast furnace, BOF steel shop and continuous casting facilities โ€“ a move thatโ€™s being described as a temporary response to the โ€œcurrent reality of weak automotive production in the United States.โ€

Other parts of the facility will remain active, including the Dearborn pickling and galvanizing lines that employ 550 other workers. The shift, according to a company statement, will allow it โ€œto operate more efficiently and in a more cost competitive way for the current market environment." 

The announcement comes tight on the heels of another, where Cleveland-Cliffs said it would temporarily lay off 630 other workers due to the stoppage of two mines in Minnesota โ€“ another move being largely pinned on a sluggish automotive industry.

Still, itโ€™s hard to know what the future holds for a steel company that has done a lot of shifting over the years, and is still in wait and see mode. In the statement regarding the Dearborn layoffs, Cleveland-Cliffs sounded bullish on the prospect of its long term growth, hinging on the results of proposed tariffs.

It said, in part:

"We believe that, once President Trumpโ€™s policies take full effect and automotive production is re-shored, we should be able to resume steel production at Dearborn Works."

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