Cleveland-Cliffs Announces Major Layoffs at Riverdale Steel Plant
Via Journal-News
In May 2025, Cleveland-Cliffs, one of the largest flat-rolled steel producers in North America, announced significant layoffs at its Riverdale, Illinois steel plant. The move affected approximately 281 workers and marked one of the most substantial industrial job cuts in the state that year.
Reasons Behind the Layoffs
The layoffs were primarily attributed to a combination of declining steel demand, rising operational costs, and market volatility. As global steel consumption slowed, particularly in the automotive sector, Cleveland-Cliffs faced difficult decisions to scale back operations and preserve financial stability.
In addition, economic uncertainty, shifting trade dynamics, and raw material inflation put added pressure on manufacturing operations. The Riverdale plant, while historically important, became unsustainable to operate at full capacity.
Impact on Employees and Community
The layoffs delivered a heavy blow to the Riverdale community, where the steel plant had long been a vital source of employment and economic stability. Many of the affected workers had spent years—if not decades—at the facility.
Cleveland-Cliffs stated that it would offer severance packages and outplacement support services to help displaced employees transition into new roles or industries. Still, the impact rippled across local businesses and families dependent on the plant's payroll.
Broader Implications for the Steel Industry
The Riverdale layoffs reflect a larger trend in the U.S. steel industry, where plants must increasingly adapt to automation, global price competition, and decarbonization pressures. As domestic production faces heightened challenges, companies are forced to consolidate operations and invest in more cost-effective technologies.
The closure is a reminder of the delicate balance between industrial output and economic viability, especially in legacy manufacturing towns like Riverdale.
