LACROIX Electronics Shuts Down Grand Rapids Facility, Over 100 Jobs Lost

News Summary

LACROIX Electronics has announced the closure of its manufacturing facility in Grand Rapids, Michigan, resulting in the layoff of 115 employees. This decision is part of a broader strategy to withdraw from North America by 2025 due to declining revenue and market uncertainties. Alongside the Grand Rapids plant, a facility in Juarez, Mexico, will also close, leading to more than 1,250 total layoffs. The company’s shift is aimed at focusing on stronger markets in the EMEA region while reducing dependency on the automotive sector.

Grand Rapids

LACROIX Electronics has announced the closure of its production facility at 1655 Michigan St. NE in Grand Rapids, Michigan, a decision that will result in significant job losses. The company estimates that 115 employees will be laid off as part of this closure, which is part of a broader strategy to withdraw from North America by the end of 2025. This decision was formally communicated through a Worker Adjustment and Retraining Notification (WARN) notice issued on May 15.

In addition to the Grand Rapids facility closure, LACROIX will also shut down its manufacturing site in Juarez, Mexico, resulting in a projected 1,251 layoffs across both facilities. The layoffs at Grand Rapids are scheduled to begin next month, with final separations expected to be completed by December 31, 2025.

Reasons Behind the Closure

LACROIX cited several contributing factors to its decision, including a 15% decrease in annual revenue from its North American operations and ongoing uncertainties regarding demand in the U.S. market. In particular, tariffs and geopolitical tensions have raised concerns about future customer contracts and import duties, further compounding the company’s challenges.

The operational plan that was implemented to restore profitability has proved inadequate, leading the company to reevaluate its North American strategy. The subsidiary was reported to have faced a negative EBITDA of €13.5 million for the fiscal year ending in 2024. Discussions with clients and suppliers are expected to take place in an effort to manage the implications of these closures.

Impact on Employees and Operations

During the layoff period, affected employees at the Grand Rapids facility will not have bumping rights and there is no labor union representation to support them during this transition. This adds an additional layer of complexity for employees facing job loss as the company prepares to exit the North American market.

As of late 2024, LACROIX’s North American operations employed a total of 1,251 individuals and generated annual revenue of approximately €141 million. However, this figure has seen a decline, which has prompted the company’s decision to consolidate operations by moving its focus to the EMEA region (Europe, the Middle East, and Africa) and its environment division after the exit.

Future Outlook

Post-exit, LACROIX intends to reduce its reliance on the automotive sector significantly. Currently, automotive revenues represent 44% of total revenues in 2024; however, the company aims to decrease this figure to less than one-third after transitioning its operations. The decision to close facilities is part of a strategic realignment towards the company’s most robust and promising areas of business.

While LACROIX has faced challenges, including fewer customer contracts and a revenue drop from €180.9 million in Q1 of 2024 to €151.1 million in the same period in 2025, the company aims to build a more sustainable future by shifting resources to its core segments. LACROIX’s leadership remains steadfast in completing the North American exit by the end of 2025, as the company prepares for a new chapter focused on growth in regions with greater potential.

Deeper Dive: News & Info About This Topic

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• Evertiq: LACROIX exits North America in strategic shift