TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

U.S. Steel cuts to include jobs in Pittsburgh

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Saturday, May 3, 2014, 12:01 a.m.
 

U.S. Steel Corp. is laying off an undisclosed number of employees as a result of its Carnegie Way initiative to cut costs.

The Downtown-based steelmaker this week announced an extra $140 million in savings, primarily from improvements in manufacturing support, supply chain, logistics and sales and administrative functions. Those are done by non-union employees.

Chief Financial Officer David B. Burritt said the additional savings increase 2014 Carnegie Way benefits to $290 million.

“A portion of that is related to head-count reductions in locations throughout the world, including Pittsburgh, our headquarters city,” the company said in a statement issued on Friday by spokeswoman Courtney Boone. “These have been difficult decisions, but have been carefully considered,” the statement said.

U.S. Steel has about 5,000 employees in the Pittsburgh area and about 37,000 worldwide.

Boone declined to disclose the number of layoffs, but said they involved employees in operations and business support functions.

The Carnegie Way was announced a year ago as a “comprehensive business transformation process focused on returning our company to sustainable profitability.”

It has suffered five straight years of annual losses, but on Tuesday reported a first-quarter profit, despite operational issues caused by ice on Lake Superior — delaying iron ore shipments from Minnesota.

Improved prices and expense cuts from Carnegie Way offset those issues. But CEO Mario Longhi forecast reduced income and a loss in its largest segment, flat-rolled steel for automotive and appliance uses, in the second quarter.

John D. Oravecz is a staff writer for Trib Total Media. He can be reached at 412-320-7882 or joravecz@tribweb.com.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Rural communities can’t shake effects of subprime crisis
  2. Russian steel to lose duty shelter
  3. Calgon Carbon poised for explosive growth
  4. Natrona Bottling Co. keeps soda pop operation focused on craft, taste
  5. Open enrollment puts varied impact of health care law back in focus
  6. CMU spinoff’s CEO gets council honors
  7. Chevron puts $20M into educating, training Appalachian workers
  8. Amid struggles, top fiscal executive to leave EDMC
  9. Market sell-off offers opening
  10. Plastics, tech sectors crucial to cracker plants
  11. PPG Industries to buy Westmoreland Supply paint store chain
Subscribe today! Click here for our subscription offers.