Federal Cartridge said it cut 21 jobs this week, marking the third round of layoffs this month. A total of 172 employees—12 percent of its workforce—have lost their jobs at the ammunition maker since the beginning of March.
Amanda Covington, spokeswoman for Utah’s Vista Outdoor, the parent company of Anoka-based Federal Cartridge, told the Star Tribune that the downsizing was due to “changing market dynamics and changing demand.”
Covington would not tell the newspaper if the round of workforce reduction was over. However, Vista Outdoor is expected to provide more details on the reduction in May when it shares its fourth quarter report.
State officials, in particular, were taken aback by the job cuts. Last November, Minnesota’s Department of Employment and Economic Development provided nearly $1.2 million in state support toward Federal Cartridge’s $34 million expansion plan that it said would create 50 new jobs over a two-year span.
Federal Cartridge is no longer receiving that support, Covington said, as it doesn’t anticipate adding 50 new workers within the agreed upon timeline.

Like what you just read? To receive business news directly in your inbox each Tuesday and Thursday, sign up for our free e-newsletter, Briefcase, and be sure to join the conversation by commenting below.