Rising energy costs and EV market slowdown drive Michigan layoff notices

Two colleagues working in modern car factory by westend61

July 22, 2026

Michigan employers filed seven Worker Adjustment and Retraining Notifications (WARN) affecting 1,677 workers in the second quarter of 2026 according to the latest update of the Upjohn Institute’s Michigan Layoff Tracker

The interactive tool, maintained by the Upjohn Regional Team, tracks large-scale lay-off notices across the state and maps where job losses are occurring, their size, and the industries most affected. The tracker is based on WARN filings, which require employers with 100 or more workers to provide advance notice of plant closings or mass layoffs. 

The 2026 second-quarter update highlights two continuing sources of disruption in Michigan’s economy: rising fuel prices and an enduring downturn in the electric vehicle (EV) market. 

EV market downturn continues to impact Michigan workers

Conditions in the EV market continue to be difficult, and more manufacturers and suppliers have announced layoffs, closures, or operational changes as contracts and orders shift.

Over the next few months, Navitas Systems, a Michigan-based company that specializes in lithium-ion batteries, will terminate 82 employees because of a facility closure from reduced work. East Penn Manufacturing Co., Navitas Systems’ parent company, is a prominent lead battery manufacturer with multiple locations near Ann Arbor. Which facility will be impacted is not yet known. 

East Penn is consolidating to refocus Navitas Systems on its “Motive Power” product line, which makes battery packs for forklifts. Navitas Systems also offers two other main product lines: “Military Battery Packs” and “Transportation Battery Packs” (the latter for cars and trucks). With the reported reduction of work and East Penn’s restructuring around Motive Power, it is unclear how the remaining product lines will be sustained.  

Rising fuel costs push out struggling firms

As fuel prices remain high ($4.00 for regular grade gasoline as of July 20th in the United States), industries reliant on petroleum will continue to feel pressure as they seek to balance increasing costs with profitability. 

Fuel prices impact both the cost of the production process and final customer demand. Rec Boat Holdings LLC, the parent company of Cadillac-based boat manufacturer Four Winns, attributed its decision to issue WARN notices for 239 jobs to the increasing cost of fuel. Petroleum is not only a key part of its manufacturing process, but also fundamental to the transport and operation of a recreational boat. Any increase in fuel prices seriously impacts its business.  

Spirit Airlines issued a permanent lay-off notice for all its locations, affecting 643 jobs at the Detroit Metropolitan Wayne County Airport. While Spirit has a history of financial issues, it cited increases in fuel prices as a key reason for being unable to continue operations. 

The Michigan Layoff Tracker is designed to help economic developers, workforce partners, policymakers, and community leaders better understand the trend of where layoffs are happening and why. This information can support faster responses for displaced workers and help regions build more resilient workforce strategies.