Schnitzer Steel Industries will lay off 7% of its workforce company-wide due to higher scrap prices and reduced demand.
Portland-based Schnitzer buys scrap from automobile shredders and other sources and sells it to steel mills. Scrap sales prices tumbled in June, reducing the company's revenue, while purchase prices increased in part because fewer cars were shredded in the slow economy.
The bind left Schnitzer holding high-cost inventory that managers said Tuesday would cut its consolidated operating income by $25 million during the fourth quarter ending Friday. Managers expect restructuring to cost about $12 million, including termination expenses and spending to consolidate certain administrative offices.
Read more at OregonLive.com.