The Novelis aluminium plant in Kingston has moved to scale back operations, cutting nine salaried positions and placing approximately 70 hourly employees on temporary layoff as the company contends with sharply reduced market access to the United States.
Company cites tariffs as catalyst for workforce reductions
In an internal email, Novelis' North America communications lead, Fiona Bell, said the decision affects roughly a third of the facility’s workforce and described the measures as necessary while volumes remain depressed. The company continues to supply aluminium to U.S. automakers and has been operating under the burden of a 50-per-cent tariff on aluminium announced by U.S. policymakers in June 2025.
The announcement marks a second, larger round of cuts at the Kingston site. The plant implemented layoffs of 21 employees on June 11, 2025, and officials say reducing headcount and idle time at lower production volumes preserves the option to ramp up if market conditions change.
“These are difficult decisions that affect our colleagues and their families, and we are supporting those impacted through this transition,”
The quote came from the company’s communication to staff. The workforce reductions were communicated to employees on Friday. Local union leadership said the move was expected as the industry adjusts to sustained trade barriers and shrinking demand.
Union and community reaction
Kevon Stewart, director for District 6 of the United Steelworkers, described the layoffs as a shock for the workers affected but not entirely surprising given the broader fallout across the sector. He said the union is engaging with employers and government to try to protect jobs and develop a long-term response.
Manufacturing has been a significant employer in Kingston, and the Novelis action follows other recent job losses in the city’s industrial base. Earlier this summer, a separate round of layoffs occurred at Invista in Kingston, increasing concerns about local manufacturing stability and supply chains that feed into the automotive sector.
Local economic implications
Novelis' Kingston site supplies flat-rolled, low-carbon aluminium products used by North American vehicle manufacturers. The imposition of steep tariffs on aluminium exported to the U.S. has strained customer relationships and order books for plants that rely on cross-border sales.
Temporary layoffs reduce operating costs quickly, but they also reduce household incomes and spending locally while creating uncertainty for suppliers and service businesses tied to plant activity. Maintaining the plant at reduced volumes, Novelis said, preserves the option to increase production if circumstances change.
- Immediate impact: Nine salaried positions eliminated; about 70 hourly workers temporarily laid off.
- Context: U.S. aluminium tariffs of 50 per cent in effect since June 2025.
- Previous actions: A prior layoff of 21 employees at the Kingston facility on June 11, 2025.
| Item | Detail |
|---|---|
| Current salaried cuts | 9 |
| Current hourly temporary layoffs | ~70 |
| Prior layoffs (June 11, 2025) | 21 employees |
For Kingston, a city that straddles the urban and rural economies of eastern Ontario, the plant’s fluctuation illuminates the vulnerability of local employment to international trade policy. Municipal leaders and local economic-development officials have long worked to diversify the regional economy, but large manufacturing sites remain important anchors for jobs and skills training.
Labour representatives say they are pushing for coordinated responses with provincial and federal officials to provide supports for affected workers, including redeployment, training and income supports while the layoffs are in effect. The company said it is supporting impacted employees through the transition but provided no additional detail on severance, recall timelines or retraining programs.
As the situation evolves, the plant’s status will depend on whether tariff policy, market demand or other factors permit increased production. For now, families, suppliers and municipal services in Kingston will feel the immediate effects of reduced wages and employment at one of the city’s prominent industrial employers.
WE NEWS will continue to monitor responses from municipal and provincial officials as well as any further announcements from Novelis and union leadership.
