Major U.S. steel manufacturer Cleveland-Cliffs Inc. announced it will be idling certain operations at its Dearborn Works facility, resulting in the layoff of approximately 600 employees. The company cited "the current reality of weak automotive production in the U.S." as the primary reason for the decision.

The company will be shutting down the Michigan basic oxygen furnace steel shop and continuous casting facilities at the Dearborn plant. However, Cleveland-Cliffs clarified that the Dearborn Works' finishing facilities, including the pickling line tandem cold mill and continuous galvanizing line, will remain operational, employing around 550 workers.

This move by Cleveland-Cliffs follows similar actions in Minnesota, where the company recently announced layoffs impacting nearly 600 steelworkers. Robert Fischer, Executive Vice President of Human Resources and Labor Relations for Cleveland-Cliffs, stated in a letter to employees that the Minnesota layoffs would affect 255 workers from Hibbing Taconite Co. and 342 from Minorca Mine.

Fischer attributed the Minnesota layoffs to "decreased domestic steel demand experienced in 2024," which has led to an "excessive iron ore pellet inventory." The company intends to utilize the shutdowns to "rebalance working capital needs and consume the excess pellet inventory produced in 2024."

In contrast to the news of the layoffs, Cleveland-Cliffs stated that its Cleveland Works C6 blast furnace, which was previously idled, is expected to be fully operational around the same time as the job cuts.

It's noteworthy that Cleveland-Cliffs has taken a somewhat different stance on the impact of tariffs compared to other players in the automotive and related industries. Cleveland-Cliffs CEO Lourenco Goncalves stated on CNBC last month that he does not view President Donald Trump's trade policy as merely a negotiating tactic.

Goncalves expressed a belief that the Trump administration is committed to revitalizing manufacturing in the United States. "There's a resolve within the Trump administration to bring back manufacturing in the U.S.," he said. "Since his first time in office, he believes that we need to protect the American worker and American businesses that play by the rules. As you block cars, you force them to produce more cars in the United States, and that will be a good thing for the economy and employment."

While the laid-off workers in Minnesota were informed that they might be recalled within six months, no such assurance was given to the affected employees in Michigan. This discrepancy adds to the uncertainty surrounding the future of the Dearborn plant's impacted workforce.

Cleveland-Cliffs is a major supplier of steel to the automotive industry, and according to Goncalves, the company employs 31,000 people across the United States.