WEST CHESTER, Ohio, Jan. 8 /PRNewswire-FirstCall/ -- AK Steel announced today that it is implementing a salaried workforce layoff plan due to the continuing economic downturn, which has significantly impacted AK Steel's customers, resulting in fewer orders for the company's steel products.
AK Steel currently employs about 1,500 salaried employees. The layoffs will likely affect salaried employees in all of the company's plants and offices. While the company said it hopes the layoffs are temporary, a 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."
In December, the company announced several cost reduction measures for salaried employees, 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. At the time, the company said it could not rule out the need for involuntary salaried job reductions if the pay reduction and voluntary retirements did not produce the necessary cost savings.
About AK Steel
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, Pennsylvania; Ashland, Kentucky; Rockport, Indiana; and its corporate headquarters in West Chester, Ohio. Additional information about AK Steel is available on the company's web site at http://www.aksteel.com/.
