Michigan employers announced 1,677 layoffs during the second quarter of 2026 as the EV slowdown, higher fuel prices, corporate consolidation and weaker consumer demand hit industries across the state.

LANSING – Michigan employers announced 1,677 layoffs during the second quarter of 2026 as the state’s economy absorbed blows from the electric-vehicle slowdown, higher fuel prices, corporate consolidation and weakening consumer demand.

Seven companies filed federal Worker Adjustment and Retraining Notification notices during the quarter, according to the latest analysis from the W.E. Upjohn Institute for Employment Research.

Three employers—Spirit Airlines, Fifth Third Bank and Daifuku Services America—accounted for 1,194 of the affected positions, or 83 percent of the quarterly total.

The layoffs extend across aviation, banking, batteries, recreational boats and airport automation. Several involve industries Michigan has promoted as sources of future economic growth.

For workers, the numbers highlight a troubling contradiction: Michigan has relatively high unemployment, employers continue to complain about worker shortages, and companies are simultaneously eliminating hundreds of positions.

Not All 1,677 Layoffs Have Happened Yet

The 1,677 figure represents layoffs announced during the second quarter, not necessarily workers who lost their jobs during those three months.

Four of the announced actions took effect during the quarter and involved 854 positions. Three other notices cover 823 layoffs scheduled between July and December, Upjohn reported.

WARN notices provide advance warning of major layoffs and plant closings. They do not capture every job lost because smaller employers and layoffs falling below federal reporting thresholds may not appear in the data.

Still, the notices provide an early warning about where pressure is building in Michigan’s economy.

Spirit Collapse Eliminates 643 Detroit-Area Jobs

Spirit Airlines accounted for the largest single layoff in the report, affecting 643 jobs at Detroit Metropolitan Airport.

The low-cost carrier ceased operations after years of financial problems compounded by sharply higher fuel prices.

Spirit faced billions of dollars in debt, growing competition from traditional airlines offering lower fares, and engine problems that grounded aircraft. Its attempted merger with JetBlue was blocked by a federal judge, and the airline subsequently went through repeated bankruptcy proceedings.

Upjohn concluded that rising fuel prices intensified problems already embedded in Spirit’s business model.

The effects could reach beyond former Spirit employees. Airport vendors, ground-transportation companies, hotels and other businesses tied to passenger activity may also lose revenue following the carrier’s disappearance.

Fifth Third-Coming Merger Cuts 502 Jobs

Another 502 jobs are being eliminated at Comerica Bank’s operations center in Farmington Hills as Fifth Third Bank consolidates the two companies following its acquisition of Comerica.

More Michigan positions could be vulnerable as Fifth Third determines which overlapping offices and branches it will retain. About 75 Michigan branches are expected to close, according to reports cited by Upjohn.

The cuts show how major acquisitions can affect workers far removed from corporate boardrooms. Combining two large banks can produce duplicated technology, compliance, administrative and customer-support departments—and those positions frequently become consolidation targets.

The merger could become one of the most consequential threats to Michigan’s white-collar workforce this year.

EV Slowdown Reaches Michigan Battery Companies

The electric-vehicle slowdown continues to spread through Michigan’s battery industry.

Navitas Systems is eliminating 82 jobs while closing at least one Ann Arbor facility. Parent company East Penn Manufacturing cited reduced work and is refocusing Navitas on battery packs used in forklifts.

Navitas also developed batteries for military and transportation applications. Upjohn said it remains unclear how those product lines will be affected by the restructuring.

Our Next Energy announced another 29 layoffs in Novi after what the company called the sudden cancellation of a contract by its largest EV customer.

ONE has received a Michigan incentive package valued at approximately $236.6 million, primarily supporting its planned battery campus in Van Buren Township.

The layoffs raise a larger policy question: How should Michigan protect taxpayers when heavily subsidized companies reduce employment or fail to reach the investment and job targets used to justify public assistance?

Fuel Prices And Weak Demand Hit Boat Manufacturing

Rec Boat Holdings announced layoffs affecting 239 jobs at its Cadillac manufacturing operation.

Its brands include Four Winns, Glastron and Scarab boats. Parent company Groupe Beneteau has been seeking a buyer for the Cadillac operation.

Boat manufacturers are particularly vulnerable to energy-price increases. Petroleum affects both the cost of operating a boat and the materials used to manufacture fiberglass components.

Higher interest rates and uncertain consumer spending create additional problems because boats represent large discretionary purchases that households can postpone.

The Cadillac layoffs therefore reflect several pressures hitting Michigan manufacturers simultaneously: energy costs, financing rates, consumer confidence and weaker demand.

Airport Automation Company Eliminates 49 Positions

Daifuku Services America announced 49 layoffs at Detroit Metro Airport because of reduced work.

The company provides automated material-handling systems, including conveyors, sorting equipment and automated guided vehicles.

Upjohn noted that an airport agreement involving checked-baggage screening equipment was scheduled to conclude after final payment for the required services.

The cuts illustrate another complication in Michigan’s transition toward automation: Technology projects can create specialized engineering and maintenance jobs, but those positions may disappear when an individual contract ends.

Is Michigan Entering A Broader Layoff Cycle?

The current figures do not necessarily signal a statewide employment collapse. Upjohn reports that Michigan WARN notices remain generally consistent with their levels before the COVID-19 pandemic.

Some layoffs are temporary. Others result from mergers, completed contracts or problems limited to individual companies.

But several weaknesses are emerging at once.

Michigan’s EV supply chain is restructuring. Fuel prices are squeezing transportation and recreational-product businesses. Corporate acquisitions are eliminating white-collar positions. Manufacturers continue contending with tariffs, financing costs and uncertain demand.

At the same time, workers appear less willing to leave their existing jobs voluntarily. Upjohn reports that quits have declined from their Great Resignation-era highs as employees face a cooler job market, slower wage growth and greater economic uncertainty.

That combination—limited hiring, fewer voluntary departures and recurring layoff announcements—can produce an economy that appears stable while becoming progressively harder for displaced workers to navigate.

The question is no longer simply how many jobs Michigan is creating.

It is whether new jobs are appearing in the same communities, industries and pay ranges as the positions being eliminated—and whether workers can make that transition before another round of layoffs arrives.

Source: W.E. Upjohn Institute for Employment Research, Michigan Layoff Tracker.