U.S. Steel cuts to include jobs in Pittsburgh

PITTSBURGH — 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.

This article was written by Channel 11's news exchange partners at TribLIVE.

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