U.S. Steel expects 2,700 layoffs
Trib Total Media
One of the biggest U.S. steelmakers is signaling how the coronavirus pandemic is set to inflict pain on blue-collar America.
U.S. Steel Corp. expects to lay off about 2,700 employees as the virus forces the company to idle most of its blast furnaces. Even before lockdowns hit the economy, producers were facing slowing demand in the manufacturing sector.
Now, U.S. Steel’s moves further illustrate how the virus is turning President Donald Trump’s much-touted “blue-collar boom” into a bust as he heads into November’s election. Economists see a historic economic contraction in the offing and millions of jobs at risk in coming months.
Pittsburgh-based U.S. Steel said in a filing Thursday that it sent out notices of plans for layoffs to 6,500 employees, but that it expects the actual number affected to be about 2,700. As of Dec. 31, the company had 27,500 people on the rolls.
“It’s all about minimizing or preserving cash in a difficult environment,” said Phil Gibbs, an analyst at KeyBanc Capital Markets. “They’re a heavy fixed-cost business, and volume right now is reasonably limited and they have to take actions.”
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