AK Steel (AKS: sentiment, chart, options) said late Thursday that it will begin layoffs among its salaried workforce due to sagging demand. The company said it hopes the job cuts are temporary, but a lingering economic downturn could mean the layoffs are permanent.

"We have the utmost empathy for our employees, and we hope they may soon return to their jobs," said Chairman, President and Chief Executive Officer James Wainscott. "However, we simply must continue to size our total workforce to our sharply lower customer order levels."

The firm did not specify how many of its 1,500 salaried employees will be affected by the payroll reduction. However, workers at the plants and offices in locations across Ohio, Kentucky, Pennsylvania, and Indiana will likely be affected. Last month, AKS announced a 5% pay cut for its salaried workforce in order to trim costs.

At last check, AKS shares were off 11.4% at $11.52. Today's news may have disappointed bullish investors; during the past 10 days, traders on the International Securities Exchange have bought to open approximately 3 times more calls than puts.