Minnesota’s economy in 2025 is sending mixed signals. Unemployment remains low at 3.2% as of April. But WARN notices are rising sharply. Layoffs and closures are happening across many sectors. These are not just isolated events. They point to broader business realignments and financial pressures.
Manufacturing is seeing major cuts.
- Smurfit Westrock in St. Paul is closing its plant. This will eliminate 189 jobs by June 16.
- Apple Valley Foods in Chaska is shutting down. Ninety-five employees will lose their jobs by July 11.
- The Shade Store in Blackduck previously announced 116 layoffs tied to a plant closure.
- Upsher-Smith in Maple Grove and CNH in Benson had earlier rounds of cuts, impacting 150 and 175 workers respectively.
Education is also under strain.
- Minneapolis Public Schools is planning deep staffing cuts. Hundreds of full-time roles will be eliminated in the 2025-26 school year. A $75 million budget gap is forcing the reductions.
- Small schools and programs like Skyline Math/Science Academy and the Center for Antiracism Research are shutting down, affecting a handful of workers.
The dining and hospitality sector continues to contract. Many closures are small, affecting one or two employees. But taken together, they reflect industry-wide volatility.
Closures include:
- Apostle Supper Club in St. Paul
- Burning Brothers Brewing in St. Paul
- 801 Fish in Minneapolis, which is laying off 37 employees
- Falastin Deli in Duluth
- Chip’s Clubhouse, North Loop Galley, and Pizza Shark in Minneapolis
- Maverick’s Wood Grill in Champlin
Retail is also seeing exits.
- Ace General Store in Excelsior is closing.
- BoxDrop in Duluth is shutting down by the end of June.
Healthcare and social services are affected too.
- Planned Parenthood, likely a regional hub in Minnesota, is laying off 66 workers.
- Lake Crystal Pharmacy is closing with one employee affected.
Other services are quietly winding down.
- Fellers LLC in Edina is closing. One employee is impacted.
These layoffs are not all massive. But the high number of notices adds up. Many businesses are trimming costs, adjusting to changing demand, or shutting down entirely.
State government uncertainty is adding pressure. Budget talks could bring more public sector cuts in the coming months. Public employees are watching closely.
Despite all this, Minnesota's job market remains relatively strong. The low unemployment rate shows many people are still working. But the growing volume of WARN notices suggests more trouble ahead.
In short, Minnesota is stable on the surface, but shifting underneath. Manufacturing, education, healthcare, and hospitality are all adjusting. Small businesses are closing quietly. The next few months will reveal if these are isolated events—or signs of a deeper trend.