ArcelorMittal, the world's largest steelmaker, which has operations in Pennsylvania, may cut the working hours at its Spanish unit by as much as 40 percent to reduce costs as demand slumps, Bloomberg News reported today.

Under an agreement between ArcelorMittal and labor unions that was cleared yesterday by the Spanish government, the Luxembourg-based company may idle part of its 12,000-strong Spanish workforce for the rest of the year, the news service said.

The layoffs may be extended until next June if required, Giles Read, a spokesman for ArcelorMittal, said today in an e-mailed statement to Bloomberg.

The former Bethlehem Steel plants in Coatesville and Conshohocken are now part of ArcelorMittal.