Kenworth to Lay Off 500 Workers

August 21, 2000 11:50 AM, EDT

Paccar Inc. subsidiary Kenworth will lay off 500 of its 1,600 workers at its Chillicothe, Ohio plant next month, the Associated Press reported Monday.

This is the latest in a round of announcements of either layoffs or temporary plant shut downs by truck makers, including Freightliner, Navistar International and Western Star. A glut on the used truck market and rising fuel costs for trucking companies are the primary reasons for slowing sales and as a result a decline in new truck orders.

The Kenworth plant will be idled for two weeks beginning Aug. 29 for preparations and layoffs will then begin Sept. 18. The plant’s second shift will be eliminated, and workers – from both the office and the production line – will be let go based on seniority, the article said. Kenworth is asking for volunteers and for some workers to opt for early retirement.