Schneider Electric says it will close a factory in northern Indiana by the end of the year, affecting 306 workers.
Mayor Gabe Greer says the closing of Schneider's Square D site will have a "huge impact" on Peru. The company has cut more than 120 jobs since 2017.
The Peru plant makes switchgear and switchboard apparatus, 85 miles north of Indianapolis, the Kokomo Tribune reported. The company, based in Rueil-Malmaison, France, said production is being shifted to other states and Mexico.
Schneider said the decision is in "response to competitive market dynamics and to meet the needs" of customers.
Workers are represented by the International Association of Machinists and Aerospace Workers. Spokesman Tim Reimke said union officials were "blindsided" by the announcement Friday. He said the union and the company plan to meet this week.