Citing a market downturn, Federal Cartridge laid off 110 production workers at its ammunitions plant in Anoka over the weekend, company officials confirmed Monday.
Affected workers were notified Thursday and let go through the weekend. All layoffs are effectively immediately, said spokeswoman Amanda Covington.
The factory had roughly 1,430 employees before the announcement.
News of the layoffs came as a surprise to state officials, who in November approved $1.15 million in state grants and loans for Federal Cartridge.
The funds were designed to assist the company with a $33.9 million factory expansion and equipment upgrades in Anoka.
The project had promised the addition of 50 additional jobs.
The building project remains on track, but the hiring goals are off the table and the loan and grant requests have been withdrawn, Covington said.
The Minnesota Department of Employment and Economic Development learned last week that "both of those awards have been canceled because … they no longer needed the state incentives to continue their projects," DEED Spokesman Shane Delaney said.