Falling Orders Prompt Salaried Workforce Layoffs at AK Steel
01/09/2009 - AK Steel will implement a salaried workforce layoff plan that it said will likely affect salaried employees in all of the company’s plants and offices.
AK Steel has announced it will implement a salaried workforce layoff plan due to the continuing economic downturn, which has significantly impacted AK Steel's customers.
The layoffs, which the company said are prompted by lower orders for the company's steel products, will likely affect salaried employees in all of the company's plants and offices. The company said that it hopes the layoffs are temporary, but cautioned that continuation of the economic downturn could result in some or all of the layoffs becoming permanent job reductions.
"We have the utmost empathy for our employees, and we hope they may soon return to their jobs," said James L. Wainscott, Chairman, President and CEO. "However, we simply must continue to size our total workforce to our sharply lower customer order levels."
The company had announced several cost-reduction measures for salaried employees in December, including an indefinite 5% pay reduction (effective January 1), freezing the defined benefit plan for salaried employees and replacing it with a defined contribution retirement benefit, and offering temporary incentives for voluntary retirements.
AK Steel currently employs about 1,500 salaried employees.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets. The company employs about 6,500 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pa.; Ashland, Ky.; Rockport, Ind.; and its corporate headquarters in West Chester, Ohio.
