Arctic Cat Just Laid People Off, Furloughed More and Paused Production

Snowmobiles aren't flying off the lot anymore.

By: Jonathon Klein

Nov 19, 2024 at 8:46am ET

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The good times of pandemic powersport purchases are over. They only could've lasted so long. And more and more manufacturers, especially for those which specialized in just one segment of the industry or those with higher-than-average prices, are feeling the heat.

But it's the former that's hurting today, as Arctic Cat snowmobiles announced it'd be laying people off, furloughing others, and pausing production until at least the new year as it grapples with today's reality. Ouch.

Arctic Cat's announcement comes as countless other powersport brands come to grips with lower consumer demand, higher interest rates, and less cash to go toward toys as economic turmoil spans the globe.

It's also likely seen demand for the brand's snowmobiles diminish as while the 2022/2023 season was a banner year for snow in the United States, the brand's main selling point, the 2023/2024 season was light on the fluffy white stuff. In fact, many locales in the Eastern area of the US saw almost no snow, and snowmobile registrations were wildly down, as were sales.

According to the release sent out to dealers, "Today, [Arctic Cat] initiated workforce reductions across our powersports business in response to the difficult business conditions facing Arctic Cat and the greater
powersports industry," adding, "These actions include the elimination of numerous positions across our business. In addition, we will pause production at our Thief River Falls facility after production of our model-year 2025 snowmobile lineup is completed. We expect to resume
production in Q1 2025."

Speaking to the local Minnesota outlet KSTP, Arctic Cat stated that 65 people were laid off, all of which would be eligible for severance as well as job-hunting services. Arctic Cat didn't relay how many people would be furloughed specifically, but the plant supported around 530 jobs prior to the layoffs. It's unclear whether the entire plant will shut down or if a few folks will remain working.

These layoffs, however, aren't just singling out Arctic Cat, as the company's parent company, Textron, was aiming to reduce its global footprint by about 1,500 employees. The company also has helicopters, planes, military, industrial, and golf cart businesses. It's a weird place.

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As for whether or not Arctic Cat can rebound remains to be seen. Winter is, supposedly, just around the corner. And while we've had a few snowfalls starting in early September here in Utah, much of the rest of the country remains unseasonably warm and without precipitation. Will we have a repeat of last year where a lot of the US just doesn't see any snowfall?

We'll have to wait and see.