U.S. Steel (NYSE:X) is going to be laying off more than 1,500 employees as it seeks to adjust its workforce.
Here’s what investors in X stock need to know about the upcoming U.S. Steel layoffs.
- The company is going to be laying off a total of 1,545 employees.
- These layoffs will take place at the Great Lakes Works factory in Michigan.
- The reason behind the layoffs is the weak demand for steel in the U.S.
- This will result in the factory mostly-closing up shop on April 1, 2020.
- The recent news about U.S. Steel layoffs come after previous ones at the same plant.
- That saw 48 employees let go temporarily as talk of more layoffs spread.
David Burritt, President and CEO fo U.S. Steel, has this to say about the layoff plans hitting X stock on Friday.
“While the current realities of the markets we serve are having a significant impact on our short-term results, we are taking swift action to align our operational footprint and financial strategy with our customers’ future to ensure we continue executing our ‘best of both’ integrated and mini-mill technology strategy.
We understand the impact today’s announcement to indefinitely idle Great Lakes Works has on many of our stakeholders, and we are acting now to reposition U. S. Steel around a footprint differentiated based on cost or capability.”
X stock was down 10.78% when markets closed on Friday. The stock is also down slightly in after-hours trading.
As of this writing, William White did not hold a position in any of the aforementioned securities.