U.S. Steel is laying off up to 677 employees at a Texas plant after crude oil prices crashed further.
The Pittsburgh-based steelmaker warned employees at its Lone Star Tubular Operations in Lone Star, Texas, they could be laid off.
"The WARN notices advise that layoffs related to the adjusted operations could take effect," spokeswoman Sarah Cassella said. "This potential action is part of an ongoing adjustment to operations due to challenging market conditions, including fluctuating oil prices, reduced rig counts, depressed steel prices and unfairly traded imports. All of these factors continue to reduce demand for tubular goods."
Crude oil prices recently plunged below $30 a gallon, to a 12-year low. The low prices have stifled exploratory drilling, which means oil and gas companies aren't buying any tubular steel products.
"The adjustment of operations at Lone Star Tubular Operations has the potential to impact approximately 677 employees at Lone Star Tubular Operations," Cassella said. "The total number of employees impacted will depend on operational and maintenance needs. The possible adjustment of operations would be temporary."
Layoffs have been mounting at U.S. Steel, which lost $173 million in the third quarter. Late last year, the company idled its Granite City Works steel mill outside of St. Louis, costing 2,000 steelworkers their jobs.
U.S. Steel stock is now trading for around $7.30 a share.