East Chicago steel plant announces nearly 900 layoffs, citing decreased demand amid coronavirus pandemic

EAST CHICAGO, Ind. (WLS) -- A steel plant in East Chicago, Indiana, is laying off hundreds of employees.

In a letter, ArcelorMittal said the layoffs for 877 people at its Indiana plant take effect Saturday.

A majority of those are labeled as indefinite layoffs, meaning the jobs could return. But the company said it expects the layoffs will last longer than six months.

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The company said the layoffs are a result of decreased demand for steel during the COVID-19 pandemic. Many of its customers closed their operations due to the coronavirus crisis, and, despite their reopenings, business conditions continue to be depressed, ArcelorMittal said.

It does not anticipate improvement in demand "in the near term."