Chesterton Tribune

 

 

US Steel cutting jobs in new corporate strategy

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By KEVIN NEVERS

After five consecutive years of losses, U.S. Steel Corporation (USS) is beginning a “transformational journey to return U.S. Steel to its status as the iconic American company.”

USS President and CEO Mario Longhi is calling the company’s new strategy “The Carnegie Way,” and in a message to investors in the 2013 annual report he describes it as a “disciplined approach” to “earn the right to grow and drive and sustain profitable growth.”

As part of The Carnegie Way, however, USS is currently reducing employment numbers, the company said in a statement released today to the Chesterton Tribune.

“United States Steel Corporation” is undergoing a comprehensive transformation process (The Carnegie Way) which is focused on returning our company to sustainable profitability,” USS said. “As reported in a our recent earnings calls, we will realize $290 million in benefits in 2014. A portion of that is related to headcount reductions in locations throughout the world, including Pittsburgh, our headquarters city.”

“These have been difficult decisions but have been carefully considered,” USS added. “We do not comment on the specifics of the reductions but they have involved employees in operations and business support functions.”

USS declined to say whether the reductions are being achieved through attrition, layoffs, or early buyouts.

Under The Carnegie Way, Longhi said in the 2013 annual report, “we are working to strengthen our balance sheet, with more intense focus on cash flow, and have launched a series of initiatives that we believe will enable us to add value, get leaner faster, right-size, and improve our performance across our core business process capabilities, including commercial, supply chain, manufacturing, procurement, innovation, and operational and functional support. We are on a mission to define and create a sustainable competitive advantage with a relentless focus on economic profit, our customers, our cost structure, and innovation.

“Our company has long been considered an icon of American industry but that status has been challenged as we weathered five consecutive years of losses,” Longhi also said. “We now must do our best to deliver process, productivity, and performance improvements and build a competitive future through innovation.”

Carnegie Way initiatives include the construction of a electric arc furnace at the company’s Fairfield, Ala., facility, what some industry observes believe is the first in a series; extending the lifetime of its Minntac Mine operation in Minnesota; installing the old Sparrows Point No. 1 caster--acquired in the liquidation of the RG Steel Plant in 2013--at its Granite City, Ill., Works; and reducing “non-represented employment levels” at the U.S. Steel Canada subsidiary.

USS posted a net loss in 2013 of $2.064 billion or $14.27 per diluted share, and a net loss in 2012 of $124 million or 86 cents.

 

 

Posted 5/6/2014