Nearly 400 workers to be laid off from Arctic Cat production plant in Thief River Falls
Arctic Cat will permanently lay off hundreds of workers from one of its production facilities in Thief River Falls, part of parent company Textron’s plan to scale back operations.
The cuts will take effect in May, leaving about 385 workers without a job, according to a notice filed with the Minnesota Department of Employment and Economic Development on Thursday.
“Changing business needs require us to reduce our workforce at the location permanently,” Stacy McDaniel, Textron’s vice president of human resources, wrote in her letter to DEED officials.
Brandon Haddock, a spokesman for Textron, said while Arctic Cat manufacturing will cease by May 22, the company’s sales, customer service and distribution divisions will still be operational.
“Textron Inc. continues to explore strategic alternatives regarding the future of the powersports business. If developments necessitate a change in plans for the Thief River Falls facility, we will make further announcements as needed,” Haddock said.
Textron announced in November it was laying off about 65 Arctic Cat workers due to “current conditions in our industry.” In December, the company said in a Securities and Exchange Commission filing that it planned to pause all production in its powersports division beginning in 2025.
“The consumer end market demand for powersports products continues to remain soft,” the filing states.
Arctic Cat was founded in Thief River Falls in 1962, and Textron acquired the company in 2017 for $246 million.
After decades in the city, Arctic Cat not only became an economic pillar but a second home for its workers.
“They’re like family to me,” Christina Parsley, who worked at the factory for 30 years, said about her coworkers.
Parsley is one of the hundreds getting laid off.
“It’s hard when they had the meeting with us today and gave us our notice, I wanted to cry, but I held back my tears,” Parsley said. “It’s going to be sad and hurtful to see that, to go away and not know when you’re going to see these people again,” she added.
The mayor of Thief River Falls, Mike Lorenson, spent the day connecting with city and state leaders to learn how best to support those let go.
“A tough time for the city,” Lorenson said. “This is a close community, and it’s going to be painful for them, and we’re going to need to gather together to see what we can do to help each other out.”
One he was in touch with was Republican state senator for the area Mark Johnson.
“The community of Thief River Falls, for a long time, really identified itself around Arctic Cat,” Sen. Johnson said.
“We’re hoping to come in and make it so that Minnesota is a place that can attract businesses, and hopefully, we can find somebody that can really revive that label, that brand,” Johnson added about his focus at the Capitol to help his constituents.