Major Layoffs Impact 1,349 Workers Across Michigan

News Summary

In April 2025, eight companies in Michigan are set to lay off a total of 1,349 workers due to plant closures and restructuring. Significant layoffs include 424 employees at Flagstar Bank in Troy, along with closures at Lippert Components and Pactiv Evergreen. This trend highlights ongoing economic shifts impacting the state’s labor market, as unions negotiate for severance and benefits, raising concerns over long-term effects on local economies.

Troy, Michigan – In a troubling development for the local economy, eight companies across Michigan are expected to lay off a total of 1,349 workers in April 2025 as they implement plant closures and make significant restructuring efforts. This series of layoffs reflects ongoing changes in industry demands and economic pressures facing the state.

Among the most significant layoffs is Flagstar Bank, which plans to let go of 424 employees at its Corporate Drive site in Troy. These layoffs will take place between April 22 and May 9, following previous reductions in workforce in 2024 involving 60 and 113 employees.

Lippert Components has also announced the closure of its Chesaning factory, which will begin laying off 159 workers in April ahead of a planned shutdown in July. Similarly, Pactiv Evergreen will terminate 153 employees at its Kalamazoo packaging plant on April 11, which is set to close in June.

In a separate restructuring move, Vibracoustic USA Inc. is preparing to lay off 18 employees at its Sandusky facility, with layoffs expected around April 12. Meanwhile, Akasol, an electric vehicle battery manufacturer, will close its plants in Hazel Park and Warren on April 14, impacting 188 jobs as production shifts to South Carolina.

Further compounding the situation, LNW Gaming will lay off 92 employees with the closure of its facility in Farmington Hills, effective April 27. Additionally, Sherwood Food Distributors is set to close operations in Detroit, resulting in the permanent layoff of 255 employees, although the company will maintain payroll through April 21.

Finally, McCann, an advertising agency located in Birmingham, will lay off 60 employees on April 5, affecting various roles including account directors and designers.

The layoffs are in compliance with the WARN Act, which mandates that companies provide at least 60 days’ notice for mass layoffs and plant closures. Affected employees will receive WARN letters posted publicly to ensure they are formally informed of their employment status. The companies have begun notifying workers about their layoff timelines.

Union representatives for the affected employees are actively negotiating severance packages and healthcare benefits to assist workers during this difficult transition. These negotiations aim to provide some financial relief and support to those losing their jobs as companies reorganize their operations.

This wave of layoffs comes amid broader economic changes in Michigan, reflecting ongoing challenges within various sectors. The closure of manufacturing plants, restructuring in corporate environments, and shifts in production to other states are contributing factors to job losses across the state.

As these layoffs take effect in the coming weeks, the Michigan labor market faces increased strain, raising concerns about the long-term impact on local economies and communities. Companies involved are hoping to streamline operations effectively, but the immediate impact on workers and families is significant, with many now facing uncertainty regarding their financial stability and future employment opportunities.

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