The U.S.-led trade war has hit Canadian companies hard, with layoffs mounting as firms brace for revenue declines tied to new tariffs. Andrew Bratt, a labour expert at Gowling WLG in Toronto, told CTVNews.ca that businesses facing a projected “huge reduction” in income are slashing labour costs swiftly. While Canada’s bolstered work-sharing program aims to curb layoffs by redistributing work hours, Bratt notes its complexity often makes layoffs the faster fix. Here’s a look at companies cutting jobs amid the tariff turmoil:
- Algoma Steel: The Sault Ste. Marie, Ont.-based steelmaker laid off over two dozen workers. Despite a narrower Q4 loss of $66.5 million (down from $84.8 million last year), CEO Michael Garcia said tariffs threaten the company’s finances, though he hopes for government aid to stabilize steel trade.
- Canada Metal Processing Group: This Brossard, Que., steel giant cut 140 jobs across Ontario and Quebec on Feb. 24, citing reduced demand from U.S. tariff threats and rising imports. The firm, which runs Ivaco Rolling Mills, Sivaco, and Infasco, is also pausing projects to save costs.
- Sheertex: The Montreal pantyhose maker temporarily laid off 40% of its 350 staff on Feb. 5, blaming tariff uncertainty. With 85% of sales in the U.S., CEO Katherine Homuth said the trade shifts compound financial pressures.
- South Shore Furniture: This Quebec manufacturer axed 115 jobs—97 in Ste-Croix and 18 in the Eastern Townships—due to a sales slump linked to tariff fears. With 70% of its goods sold in the U.S., it’s restructuring as American buyers shift to Asian imports.