Cleveland-Cliffs Inc., America's largest automotive steel supplier, announced plans to idle operations at its Dearborn plant this summer, resulting in approximately 600 layoffs. The company cited weak automotive production in the United States as the primary reason for the workforce reduction.
The shutdown will affect the basic oxygen furnace steel shop and continuous casting facilities at the Michigan plant. The decision follows similar moves in Minnesota, where the company plans to lay off nearly 600 steelworkers starting in May across two facilities - Hibbing Taconite Co. and Minorca Mine.
According to company executives, decreased domestic steel demand in 2024 has led to excessive iron ore pellet inventory, prompting the need to rebalance working capital. While the Dearborn Works' finishing facilities will continue operating with around 550 employees, the company provided no timeline for when the laid-off workers might return.
Cleveland-Cliffs CEO Lourenco Goncalves maintains an optimistic outlook on U.S. trade policies. Speaking on CNBC, he expressed support for measures aimed at increasing domestic car production, suggesting this could eventually benefit American steel manufacturers and workers.
The company, which employs 31,000 people across the United States, stated that these operational changes will help them maintain cost competitiveness in the current market environment. Cleveland-Cliffs anticipates potentially resuming steel production at Dearborn Works once automotive manufacturing increases domestically.
This workforce reduction reflects broader challenges facing the American steel industry as it adapts to fluctuating automotive demand and evolving market conditions.