It has been found that ferromagnetic sheet material can be scribed in order to reduce watt losses by a thermal method involving rapid heating of small areas or narrow bands of the material in a manner that produces sudden thermal expansion to a degree sufficient to produce plastic deformation within the thermally treated zone. This method has been found to be particularly applicable to electrically insulative coated ferromagnetic sheet wherein it has been found that a laser operating in a continuous wave or extended pulse mode can produce the desired deformation in the ferromagnetic material without damage to the coating properties.