Arctic Cat Confirms Permanent Layoffs in May

Arctic Cat, owned by Textron, plans to lay off around 385 employees at its Thief River Falls manufacturing plant in May, as part of a broader strategy to reduce production in the powersports division. This decision follows a previous layoff of 65 employees in November, attributed to declining consumer demand. The layoffs will affect a range of positions, including engineers and machine operators, and will be permanent, as indicated in a WARN letter to the Minnesota Department of Employment and Economic Development. Although manufacturing will cease, Textron will maintain sales, customer service, and distribution operations. The company is also exploring strategic alternatives for the powersports business, hinting at potential future changes. Arctic Cat, founded in 1962, has faced significant industry challenges, exacerbated by Yamaha's exit from the snowmobile market in 2023.