ArcelorMittal has said that the 2,800 layoffs will take place at its Mexico unit. The company is blaming the job cuts on lowered steel prices around the world. It also blames the cuts on some countries that are selling steel at lower prices than production and said more layoffs could be on the way, reports Reuters.
ArcelorMittal is also facing issues in the automobile market. The shift to aluminum by some manufacturers leaves it without as much work and it’s trying to solve that issue. It’s response was to create a lighter steel and place engineers in companies so that it would know what to expect in the future, Bloomberg notes.
ArcelorMittal isn’t the only steel company that has warned of possible layoffs. Altos Hornos de Mexico and DeAcero also warned that cheap steel prices could result in them having to layoff employees, reports Reuters.
MT shares were down 1% as of Thursday afternoon.