Company will lay off 908 across entire organization

Loudon – Morgon Olsen, a delivery truck and van manufacturer in Loudon is set to layoff 290 workers in its Loudon plant on December 22 as a part of a “larger series of workforce reductions across its plants,” according to memo by the Department of Workforce development.

The company filed a WARN notice with the Tennessee Department of Labor and Workforce Developmment to notify the agency of the permanent layoff. Across all locations, the company will lay off 908 total. The employees are not represented by a collective bargaining agreement.

MO produces vehicles for UPS, FedEx and Aramark. The economy is playing a role in the decision, according to MO. New vehicle purchases from those major delivery companies have delayed due to “current economic conditions,” says the company.

Layoffs will last through the end of the year. MO says it hopes for improved business and a possibility to rehire, but there are no plans to rehire currently. MO will continue production at all locations however, and says it anticipates a bounceback in market demand for the delivery vehicles.

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Ron Moses is the managing editor of the Upper Cumberland Business Journal and can be reached via email. Send an email.

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