Layoffs set at AK Steel
WEST CHESTER, Ohio — AK Steel announced Friday that it is beginning a planned salaried workforce layoff because of bad economic conditions.
The steelmaker has about 1,500 salaried employees.
Alan McCoy, vice president of government and public relations, said the layoffs will be company wide, saying he couldn't be specific about the number of layoffs or the effect at the Butler Works in Butler Township.
"These are to be temporary layoffs — we hope," McCoy said, adding that AKSteel can't guarantee that all workers will return to their jobs.
In December, AKSteel announced that it would cut salaried employees' pay by 5 percent as of Jan. 1. That action has begun.
The Mansfield, Ohio, and most of the Ashland, Ky., plants were idled in November, while other plants have been working on shortened work weeks — all as a way to address fewer orders and other effects of the global economic downturn.
How much AK Steel needs to save through these measures is a "moving target," McCoy said.
"Everything is fluid in this market. We are just reacting or trying to anticipate what will happen next," he said.
As for the Butler Works, which has about 220 salaried employees and about 1,300 union employees, McCoy could not be specific about layoffs.
However, work on plant upgrades that began in 2007 continues, though the company is waiting for a state Department of Environmental Protection permit for the plant's new $130 million electrical furnace.
"We are scrutinizing every cost to manage our cash, and when we do get that permit, we will then have to make the decision on moving forward with the project at that time," McCoy said.
"We just hope to see an upswing (in the market)by then."
