Cleveland-Cliffs posts strong profits but blames Canada for Stelco layoffs
A major steel producer reported its best quarter in three years on the same day it blamed trade policies for laying off hundreds of workers.
Layoffs · Source: Manufacturing Dive
What happened
Cleveland-Cliffs just reported its strongest quarterly performance in three years. The steel producer posted a net income of $152 million for the third quarter. Revenue rose to $5.61 billion. The company credited tariffs and high prices for the strong results.
Despite the financial success, the company is laying off hundreds of Stelco steel workers in Ontario. CEO Lourenco Goncalves blamed the Canadian government for the cuts. He stated that an avalanche of imports is hurting the domestic market for galvanized steel.
The CEO offered a conditional promise to the laid-off workers. He said production in Hamilton, Ontario, could restart if Canada fixes its tariff-rate quota system. Until then, the workers remain out of a job.
By the numbers
- $152 million — Cleveland-Cliffs net income for the third quarter
- 15.7 percent — How much the company stock surged after the earnings report
- Hundreds — Number of Stelco steel workers facing layoffs in Ontario
Why it matters
This situation shows that a highly profitable company does not guarantee job security. Cleveland-Cliffs saw its stock surge nearly 16 percent after beating earnings expectations. Yet, hundreds of workers still lost their jobs because of regional trade policies.
Trade wars and tariffs directly impact where companies choose to hire or fire. When governments change import rules, multinational companies quickly adjust their local workforce. Job seekers need to understand that political disputes over trade can erase jobs overnight.
Who this hits
Manufacturing workers
Hundreds of Stelco steel workers in Ontario are losing their jobs. Their return depends entirely on whether the Canadian government changes its import policies.
Job seekers at multinational firms
Candidates looking at large companies must look beyond the balance sheet. Your job security might depend more on international trade policies than the company's overall revenue.
What to do this week
- Research the specific division you are interviewing for, not just the parent company's overall financial health.
- Track industry news regarding tariffs or trade policies if you work in manufacturing or supply chain roles.
- Ask hiring managers how international trade rules or local regulations impact their specific team's budget and headcount.
See who's hiring right now on GiraffyReach
My take
A company's record profits do not automatically protect your job. We see this clearly when a CEO celebrates a massive earnings beat while simultaneously laying off hundreds of workers over a trade dispute. Always remember that your role is tied to local business conditions, not just the global balance sheet.