Michigan Companies Announce Extensive Layoffs for 2024

In an alarming revelation of the economic situation in Michigan for the year 2024, notable companies from various sectors including automotive, health care, and agriculture announced massive workforce layoffs. The layoffs, amounting to a staggering 9,266 for 2024, were triggered by several factors such as evolving market trends, economic challenges, and bankruptcy. This marks the highest number of layoffs for Michigan since 2020, with a modest increase from 9,141 reported in 2023.

Stellantis Announces Layoffs

Stellantis, a Jeep maker, led brunt of the layoffs with an unspecified number of workers in its U.S. factories due to the shift towards electric vehicles and a decline in U.S. sales in the first quarter of 2024. Notably, the company faced high costs due to a new contract agreement reached in 2023 with the United Auto Workers union. The most affected plant was the Ram pickup truck factory in Sterling Heights bearing the brunt of layoffs with a reported 199 full-time workers.

General Motors Cuts Jobs

General Motors wasn’t far behind, announcing layoffs of about 1,000 workers worldwide, including hundreds in Michigan. Primarily affecting white-collar positions, the layoffs were part of the company’s strategy to focus on electric vehicles and enhance operational efficiency. The company’s Global Technical Center in Warren saw the majority of job cuts, affecting about 507 employees.

University of Michigan Health Plan Layoffs

The healthcare sector was impacted as well, with the University of Michigan Health Plan announcing a cessation of its affiliation with Michigan Medicine. As a result, 192 employees were slated for permanent layoff and this action is expected to continue till February 2026. Despite being a difficult decision, the move was impelled by comprehensive evaluation of the plan’s financial sustainability and market trends.

Herbruck’s Poultry Ranch Downsizing

The agriculture sector was also hit with layoffs as Herbruck’s Poultry Ranch, one of the biggest egg producers in Michigan, had to lay off nearly half its staff after an avian influenza outbreak infected their flock. The company notified the state that about 400 workers across five facilities would be affected, impacting positions in processing, production, human resources, and marketing among others.

Rite Aid Closes Michigan Stores

In the retail industry, the pharmacy chain Rite Aid not only announced the closure of all its stores in Michigan but also the closure of its Pontiac distribution center, leading to layoffs for 191 workers employed there. The company cited declining sales and opioid-related lawsuits as reasons for the closures and layoffs.

Universal Logistics Shuts Detroit Facility

Finally, logistics and transportation company, Universal Logistics, stated in a letter that it would terminate operations at its Detroit facility thereby eliminating 447 positions, primarily for forklift operators and sequencers.

All these layoffs are seen as a reflection of the challenging economic landscape faced by businesses and holds severe implications for the Michigan economy and its workforce. These companies are required by the Federal Worker Adjustment and Retraining Notification (WARN) Act to provide an advance notice of at least 60 days in such cases of qualified plant closings and mass layoffs.

Author: HERE Plymouth