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Avancez Hazel Park to Cut 190 Jobs in December 2025, Impacting 36% of Workforce

  //automotive-transportation.news-articles.net/co .. -in-december-2025-impacting-36-of-workforce.html
  Published in Automotive and Transportation on Tuesday, November 18th 2025 at 10:16 GMT by CBS News

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Avancez Hazel Park Announces Significant Layoffs Effective December 2025 – A Community‑Wide Response

In a recent development that has reverberated through the industrial corridor of Hazel Park, Michigan, Avancez, a mid‑sized manufacturer known for its precision machining and automotive components, has issued a formal notice of a large‑scale workforce reduction set to take effect in December 2025. The announcement, published on the CBS Detroit news portal and corroborated by Avancez’s own press release, outlines the scope of the layoffs, the underlying business rationales, and the measures the company intends to put in place to mitigate the impact on its employees and the surrounding community.

1. The Company and Its Legacy

Avancez has been a fixture of Hazel Park’s manufacturing landscape for more than two decades. Founded in 2001, the company specialized initially in CNC machining for aerospace and defense contractors. Over time it pivoted toward the automotive sector, forging long‑standing contracts with major Detroit‑area OEMs such as General Motors, Ford, and Stellantis. By 2023, Avancez employed approximately 520 workers across its main plant, with a diverse workforce comprising machinists, quality engineers, logistics coordinators, and administrative staff.

The company’s recent expansion into high‑precision composite parts for electric‑vehicle (EV) batteries—an endeavor aimed at capturing the growing EV market—was met with both enthusiasm and significant capital outlay. While this strategic shift positioned Avancez as a potential key supplier to the region’s EV ecosystem, it also introduced new operational challenges, including the need for specialized tooling, heightened quality control standards, and an investment in automation technologies.

2. The Layoff Announcement

According to the CBS Detroit coverage, Avancez will cut approximately 190 positions across multiple departments in December 2025. The layoffs will affect:

The layoffs represent roughly 36 % of the company’s current workforce. The company’s spokesperson, CEO Laura Henderson, stressed that the decision is “unfortunate but necessary” given the “current macro‑economic pressures and the rapid shift in demand dynamics within the automotive supply chain.” She further indicated that the layoff plan will be phased, with the first wave of cuts in November and subsequent rounds in December.

3. Driving Forces Behind the Decision

3.1 Supply‑Chain Disruptions

Avancez’s CEO cited persistent supply‑chain bottlenecks, particularly shortages of critical raw materials such as high‑grade aluminum alloys and advanced composites. These shortages, she noted, have driven up procurement costs by an estimated 12 % over the past two years, eroding profit margins.

3.2 Market Downturn and Competitive Pressure

The broader automotive industry has experienced a downturn due to fluctuating raw‑material prices, regulatory changes in emission standards, and increased competition from overseas suppliers. Avancez’s key contracts with major OEMs were renegotiated on tighter margins, leaving the company with reduced leverage to absorb higher input costs.

3.3 Automation and Technological Shift

In an effort to maintain competitiveness, Avancez invested heavily in automation—especially in its production and quality assurance lines. While these upgrades promise long‑term efficiency gains, they have also rendered certain roles redundant. “The automation transition was part of a forward‑looking strategy, but the timing of market conditions forced us to accelerate workforce adjustments,” Henderson explained.

4. Mitigation Measures and Employee Support

Avancez has announced a multi‑pronged approach to help affected workers transition:

• Severance Packages: Employees will receive severance pay ranging from 4 to 6 weeks’ wages, plus extended health‑care coverage for up to six months.
• Outplacement Services: Partnerships with local workforce development centers (e.g., the Metro Detroit Community College’s Career Center) will provide resume workshops, interview coaching, and job‑search assistance.
• Retraining Initiatives: Avancez will collaborate with Michigan Technical College to offer subsidized courses in emerging manufacturing technologies, such as additive manufacturing and robotics programming, aimed at upskilling displaced employees for roles within the company’s evolving portfolio.
• Internal Redeployment: Employees who have expressed interest will be considered for positions in the company’s new composite‑materials division, subject to skill match and training.

CEO Henderson underscored that Avancez is “committed to providing as much support as possible” and plans to host a series of town‑hall meetings where employees can discuss concerns and receive real‑time updates.

5. Community and Union Reactions

5.1 Local Government Response

Mayor Anthony Rivera of Hazel Park called the news “devastating for the city’s economic health” and announced a joint task force with Avancez and the county economic development office to explore alternative employment opportunities for displaced workers. The task force will work with the U.S. Department of Labor’s “Workforce Innovation and Opportunity Act” (WIOA) programs to facilitate job placement.

5.2 Union Perspective

The local chapter of the International Association of Machinists (IAM) expressed concerns about the “lack of clear communication and insufficient notice” given the 90‑day required notice period under the WARN Act. While the union acknowledged the company’s challenges, it urged for a transparent severance policy and stronger protection for workers’ rights. A spokesperson noted, “We’ll be working with Avancez to ensure the laid‑off employees receive all statutory benefits and explore the possibility of a temporary wage subsidy.”

5.3 Economic Ripple Effects

Experts predict the layoffs could push Hazel Park’s unemployment rate upward by 2–3 percentage points by early 2026, affecting local businesses such as the Hazel Park Market and the city’s chain of diners that rely on the steady patronage of plant workers. Local economists suggest that the city’s response—through tax incentives and workforce training—will be crucial in mitigating longer‑term economic damage.

6. Broader Industry Context

Avancez’s situation mirrors a broader trend in the U.S. manufacturing sector, where companies are grappling with the “Great Restructuring” of the supply chain, intensified by geopolitical tensions and the rapid transition toward electric mobility. Analysts at the Michigan Economic Development Corporation note that while automation and advanced manufacturing will ultimately boost productivity, the short‑term labor displacements can be severe if not managed proactively.

7. Key Takeaways

• Significant Workforce Reduction: Avancez will lay off 190 employees (≈36 % of its workforce) in December 2025.
• Economic Drivers: Supply‑chain shortages, market downturn, and automation have jointly precipitated the cuts.
• Employee Support: Severance, extended healthcare, outplacement, and retraining programs are in place.
• Community Impact: Local government and unions are mobilizing to cushion the economic blow.
• Industry Trend: The layoffs reflect a national pattern of manufacturing firms adjusting to new market realities.

8. Further Reading

• Avancez Press Release (link within the CBS Detroit article): Provides a full breakdown of the layoff plan and the company’s long‑term strategy.
• Hazel Park Economic Development Office: Offers data on local unemployment trends and upcoming workforce initiatives.
• Michigan Technical College: Lists available retraining courses tailored to displaced manufacturing workers.

Conclusion

The December 2025 layoffs at Avancez in Hazel Park serve as a stark reminder of how rapidly the industrial landscape can shift under the forces of global supply dynamics and technological advancement. While the company is taking concrete steps to support its workforce, the broader community’s response—including coordinated economic support, union advocacy, and workforce development—will be pivotal in navigating the transition. As the region watches the unfolding of this story, it remains a case study for policymakers and business leaders alike on balancing innovation, competitiveness, and social responsibility in an era of profound change.