U.S. Steel Corp. expects to lay off more workers this year as the Downtown-based steel manufacturer accelerates cost-cutting to deal with a significant downturn in demand, CEO Mario Longhi said Wednesday.
The company has laid off 2,800 workers since the beginning of the year as it reduces steel production at all its plants in North America. It has issued notices to 9,000 of its workers warning them that they could be cut which gives the company flexibility to react to worsening conditions.
Longhi told analysts that the number of layoffs will go higher, but he didn’t provide specifics.
U.S. Steel Tower in downtown Pittsburgh, Pennsylvania. (Photo credit: Wikipedia)
Losses from U.S. Steel Corp.’s restructuring continued despite revenue and operating results that beat analyst’s expectations.
The loss was an improvement from a year ago and was helped by the company’s flat-rolled steel operation and other segments, which did their best since 2008. Operating profit from flat-rolled, tubular, U.S. Steel Europe and other units totaled $479 million, or $94 per ton of steel produced, the company said. That compared to $113 million, or $24 per ton a year ago.
“Steel market conditions in the United States have remained stable, and our operations have performed well, particularly our flat-rolled segment, where we returned to more normal operating levels and income from operations increased by over $300 million from the second quarter,” CEO Mario Longhi said. “Our results reflect the significant improvement in our earnings power from our Carnegie Way transformation efforts.”