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.

By John D. Oravecz
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.

Subscribe today! Click here for our subscription offers.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. Trade deals good way to add jobs, CEOs say
  2. Concurrent Technologies focuses on developing batteries for renewable energy, electric cars
  3. Auto industry slows for bad weather, but stays on course
  4. Impact fees garner support from state community leaders
  5. Foreign central banks buck Fed, cut interest rates
  6. Oil glut forces producers to seek out more storage tanks
  7. Mud serves as multipurpose tool in $100B shale industry
  8. Company proposes building 2 gas-fired power plants in West Virginia
  9. Markets ‘flutter’ day after records
  10. Profit increases 12% at Dick’s Sporting Goods
  11. Lower tax rate to help Mylan extend buying spree