News Summary
LACROIX Electronics will close its production facility in Grand Rapids, resulting in 115 layoffs. This move follows a significant revenue decline and aims to streamline operations. The closures will include the Juarez site, totaling over 1,250 layoffs. The company cites economic challenges and a shift in focus towards European markets as key factors driving this decision.
Grand Rapids, Michigan – LACROIX Electronics has announced the impending closure of its production facility located at 1655 Michigan St. NE, which will result in 115 layoffs. The company issued a Worker Adjustment and Retraining Notification (WARN) on May 15, 2025, detailing that the closure is set to be completed by the end of 2025.
The layoffs at the Grand Rapids operation are expected to begin next month, with the final separations scheduled to occur by December 31, 2025. Additionally, the company will close its other North American site in Juarez, Mexico, leading to a total of 1,251 layoffs across both locations. Employees affected by these layoffs do not have bumping rights, as they are not represented by a labor union.
LACROIX’s decision to close its North American facilities comes on the heels of a 15% decline in annual revenue from these sites, attributed to various factors, including uncertainty stemming from tariffs and a diminished demand in the U.S. market. The company’s North American operations had already reported a negative EBITDA of €13.5 million for the 2024 fiscal year, highlighting the ongoing struggles faced by its subsidiary.
The announcement of the closures aligns with commitments made by LACROIX in March 2025 to reassess its North American operations to eliminate losses by 2026. The company has faced challenges including the loss of several significant customer contracts and ongoing geopolitical tensions that have further escalated the business outlook for the American subsidiary.
In recent financial assessments, LACROIX indicated that revenue from its electronics activities declined by 15.9% during the first quarter of 2025 compared to the same period in 2024. These persistent financial struggles prompted the company to reconsider its presence in North America.
The Federal WARN Act mandates that companies must give at least 60 days’ notice before issuing mass layoffs or closing facilities, which LACROIX has adhered to by notifying employees and posting the closure letter on the Michigan Department of Labor and Economic Opportunity website.
As part of the transition, LACROIX plans to engage in discussions with clients and suppliers to determine the most appropriate next steps. Options under consideration include the potential sale of assets, operational shutdowns, or liquidation procedures for the affected facilities.
Moving forward, LACROIX aims to refocus its business on its remaining electronics operations in the EMEA (Europe, Middle East, and Africa) region and its environment division. The company intends to reduce its exposure to the automotive sector, dipping below one-third of total revenue from the 44% contribution in 2024.
Prior to the upcoming layoffs, the North American operations employed a workforce of 1,251 at both the Grand Rapids and Juarez sites. The future of these roles now hangs in the balance as the company navigates through this strategic withdrawal from the North American market.
LACROIX’s proactive measures reflect its ongoing strategy to stabilize its financial situation and improve profitability by aligning operations with more favorable markets while reducing exposure to high-risk areas.
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LACROIX Electronics Shuts Down Grand Rapids Facility, Over 100 Jobs Lost
Additional Resources
- MLive: 115 layoffs planned in Grand Rapids
- Wikipedia: LACROIX Electronics
- GlobeNewswire: LACROIX announces exit from North America
- Google Search: LACROIX Electronics closure
- evertiq: LACROIX exits North America in strategic shift
- Encyclopedia Britannica: Electronics
- Crain’s Grand Rapids: Firstronic enters joint venture
- Google News: LACROIX Electronics layoffs
