Factory fallout: Manufacturing plant closures and layoffs from GM, PepsiCo, Cleveland-Cliffs, and more

Factory fallout: Manufacturing plant closures and layoffs from GM, PepsiCo, Cleveland-Cliffs, and more

April 28, 2025
Once-steady production lines are slowing or shutting down as companies adjust to a radically changing landscape.

With political winds changing and global markets tightening, manufacturers are making tough decisions—and workers are feeling the impact. In this roundup, we chronicle the closures and cutbacks reverberating throughout the manufacturing sector. As uncertainty becomes the new normal, we examine how businesses and workers alike are navigating a rapidly changing industrial landscape. 

According to KSTP, Arctic Cat, a manufacturer of snowmobiles and all-terrain vehicles, will permanently lay off approximately 385 workers at its production facility in Thief River Falls, Minnesota, as part of parent company Textron’s plan to scale back operations. The layoffs will take effect in May, with all manufacturing at the site expected to cease by May 22. In a recent quote, Stacy McDaniel, Textron’s vice president of human resources, said, “Changing business needs require us to reduce our workforce at the location permanently.” While manufacturing will end, Textron stated that sales, customer service, and distribution operations will remain active at the facility. 
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According to CBS News, PepsiCo will permanently close its PopCorners manufacturing plant in Liberty, New York, resulting in the layoff of 287 non-union employees between May 21 and June 6. The closure, listed as "economic" in a WARN Notice filed with the state, impacts nearly 300 workers in Sullivan County. In a recent quote, PepsiCo Foods U.S. said, “Recently, PepsiCo Foods U.S. announced the closure of our facility in Liberty, NY. This plant has played a vital role in producing our beloved PopCorners brand, but the pace of growth for this product line paired with broader industry pace of growth has made it difficult to sustain the site's long-term viability.” The company stated it is working closely with affected employees and local officials to support the transition. 
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According to the Minnesota Star Tribune, The Shade Store is closing its factory in Blackduck, Minnesota, resulting in the layoff of 115 employees. The facility, which once employed 270 workers, has struggled to recruit skilled craftspeople to replace those who have retired or left, a challenge attributed to the area's aging and declining population. The Shade Store, based in Port Chester, New York, manufactures handcrafted premium window coverings. 
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According to the Detroit Free Press, General Motors is laying off 200 employees at its Factory Zero facility in Detroit and Hamtramck, effective Monday, to align production with current market dynamics. The plant produces electric vehicles including the Chevrolet Silverado EV, GMC Sierra EV, and Hummer EV. While the jobs are not being permanently eliminated, the affected workers have no definite return date. In a recent quote, a GM spokesperson said, “Impacted employees will be placed on a temporary layoff and may be eligible for subpay and benefits in accordance with the GM-UAW national contract.” 
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According to WXYZ, Cleveland-Cliffs will lay off 600 employees at its Dearborn Works steel facility in Michigan starting July 15, due to weak U.S. automotive production. The company plans to temporarily idle the blast furnace, BOF steel shop, and continuous casting operations at the plant. In a recent quote, a company representative said the decision is due to “weak” U.S. automotive production. The layoffs reflect ongoing market challenges and uncertainty in the steel and automotive sectors. 
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About the Author

Alexis Gajewski | Senior Content Strategist

Alexis Gajewski has over 15 years of experience in the maintenance, reliability, operations, and manufacturing space. She joined Plant Services in 2008 and works to bring readers the news, insight, and information they need to make the right decisions for their plants. Alexis also authors “The Lighter Side of Manufacturing,” a blog that highlights the fun and innovative advances in the industrial sector. 

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