More Iron Range steelworker layoffs looming as Cleveland Cliffs cuts production

Nearly 50 Hibbing Taconite workers received notice that they’ll be out of work Feb. 1, following the layoff of about 250 last March.

The Minnesota Star Tribune
January 9, 2026 at 5:44PM
An aerial view of state Highway 169 between Chisholm and Hibbing, Minnesota.
Hibbing Taconite mined to the very edge of Hwy. 169 between Chisholm and Hibbing. (Aaron Brown/The Minnesota Star Tribune)

DULUTH – Cleveland Cliffs is expected to lay off another 45 steelworkers at Hibbing Taconite on Feb. 1, further reducing production at the mine that has been partly idled since last March, according to a union leader.

The Ohio-based company laid off more than 600 workers between its Virginia and Hibbing mines on March 20, blaming excess pellet inventory and the need to balance finances. Iron Range mines are deeply tied to the U.S. auto industry, and President Donald Trump’s tariffs have made for a turbulent time.

“To say [Cliffs is] struggling is an understatement,” said Al King, president of the steelworkers union for the idled Cliffs-owned Minorca mine in Virginia.

A message to a Cleveland Cliffs spokeswoman was not immediately returned.

Because the number of laid-off workers was less than 50, no WARN (Worker Adjustment and Retraining Notification Act) notice was required, which would have given workers more time to find other jobs.

About 250 workers will remain in February, less than half the number it typically employs, King said.

King said he and other union leaders would seek another extension of unemployment benefits for laid-off workers from the Legislature this year.

In a bipartisan effort, northeast Minnesota lawmakers successfully pushed an extended unemployment bill in the last legislative session, which expires in June.

Cleveland Cliffs is majority owner of Hibbing Taconite, with U.S. Steel as the minority owner. Third-quarter revenue for 2025 was down slightly from the previous quarter, at $4.7 billion, the company said in October.

However, Cliffs Chairman and CEO Lourenco Goncalves said during an October earnings call that the company had just had its best auto steel shipment quarter since the start of 2024.

Those results “were a clear indication that a significant rebound in domestic steel demand has started,” he said, noting automakers have told him they want to “reduce their exposure to tariffs and to foreign volatility.”

Hibbing Taconite is estimated to have produced about 2.7 million tons of iron ore pellets in 2025, according to the Minerals Tax Office within the Minnesota Department of Revenue.

The mine produced about 5.2 million tons of pellets in 2024.

King, who said Cleveland Cliffs has given no indication of when or whether it will reopen the Minorca mine, noted it’s been difficult seeing U.S. Steel’s Keetac and Minntac mines flourish under new owner Nippon Steel. More than two dozen Minorca employees have left for neighboring U.S. Steel mines.

“They’ve got this influx of cash ... they are promised money to buy brand new equipment,” he said. “It’s tough to just keep sitting under the Cliff’s umbrella, a company that’s basically struggling to pay the bills.”

Japan’s Nippon Steel acquired U.S. Steel for $14.9 billion in June with plans to modernize its aging infrastructure, including its two Iron Range mines.

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about the writer

Jana Hollingsworth

Duluth Reporter

Jana Hollingsworth is a reporter covering a range of topics in Duluth and northeastern Minnesota for the Star Tribune. Sign up to receive the new North Report newsletter.

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An aerial view of state Highway 169 between Chisholm and Hibbing, Minnesota.
Aaron Brown/The Minnesota Star Tribune

Nearly 50 Hibbing Taconite workers received notice that they’ll be out of work Feb. 1, following the layoff of about 250 last March.

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