Novelis cuts nearly one-third of Kingston workforce as US tariffs squeeze aluminium demand

Novelis is cutting roughly one-third of its workforce at its Kingston, Ontario, aluminium facility, with the company citing the impact of US tariffs on aluminium imported from Canada.

The company is reducing its salaried workforce by 10 employees and temporarily laying off approximately 70 hourly workers, according to a statement issued by Novelis on Friday, September 18. The cuts affect roughly one-third of the facility's workforce.

“These are difficult decisions that affect our colleagues and their families, and we are supporting those impacted through this transition,” Novelis said. Novelis pointed to the Section 232 duties imposed by the US on aluminium imported from Canada as the reason behind the workforce reduction.

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The latest move comes after a new round of US tariffs on Canadian goods took effect on September 15, with aluminium among the products facing a 50 per cent tariff.

The Kingston facility produces speciality aluminium products for sectors including marine, transportation and industrial applications.

The latest layoffs have also raised questions about the future of the Kingston operation. Fiona Bell, head of communications for Novelis North America, said the company's long-term outlook for the facility remains uncertain.

“In terms of the plant's future, it is difficult to say what might happen in the long term,” Bell wrote in an email. She added, “Remaining operational provides us with an option to preserve capability should the circumstances change in a meaningful way.”

The latest workforce reduction is not the first tariff-related hit to Novelis' Kingston operations. In June 2025, the company laid off 21 employees, or around 7 per cent of its workforce at the time, following the US increase in aluminium and steel tariffs from 25 per cent to 50 per cent. Novelis confirmed then that the layoffs were directly linked to the Section 232 tariffs.

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