Arctic Cat laying off about 385 employees in May
People look at an Arctic Cat snowmobile during the 2023 Toronto International Snowmobile, ATV & Powersports Show in Mississauga, the Greater Toronto Area, Canada, on Oct. 21, 2023. (Getty Images)
THIEF RIVER FALLS, Minn. (FOX 9) - About 385 employees will be laid off from Arctic Cat's snowmobile plant in Thief River Falls during the month of May, according to a WARN (Worker Adjustment Retaining Notification) letter shared by the Minnesota Department of Employment and Economic Development.
This is the latest round of layoffs following another announcement in 2024, where 65 people were laid off when the company suspended snowmobile production after completing the 2025 model year.
READ MORE: Arctic Cat announces layoffs, furloughs at Thief River Falls facility
Arctic Cat layoffs
Big picture view:
The WARN letter from state authorities said the permanent layoffs will begin on May 8 through May 22.
The 385 workers are currently employed at Arctic Cat's facility in Thief River Falls.
The WARN letter adds that the employees are not represented by a union and bumping rights do not exist.
The positions being axed include engineers, technicians, truck drivers, welders, machine operators and several others.
Past company challenges
Dig deeper:
Arctic Cat initially said in 2024 that it only planned to furlough many of its hourly production employees until production resumed sometime in early 2025.
This latest announcement shows that the furloughs are permanent, with other employee positions also being cut.
A company quarterly report released back in September 2024 states that "lower anticipated consumer demand" for specialized vehicles and canceled projects were factors in the company’s decision to "reduce operating expenses through headcount reductions."
The report adds that the plan to reduce operating expenses was approved back in April 2024.
In 2023, Yamaha announced it was exiting the snowmobile market after 50 years in the business.
READ MORE: Yamaha will stop making snowmobiles after 50+ years
The backstory:
Arctic Cat was founded in 1962 by Edgar Hetteen, according to the company's website.
The industrial conglomerate Textron then bought Arctic Cat in 2017.
The Arctic Cat ZR 858 was previously in the running for Minnesota’s coolest product contest.
The Source: A news release from the Minnesota Employment and Economic Development and past FOX 9 reporting.