KGP Telecommunications LLC has informed the state it expects to lay off about 300 workers between two facilities in Warsaw, following a "sudden decrease in business" when a major customer cut back its orders.
The subsidiary of Minnesota-based KGPCo told the Indiana Department of Workforce Development and city officials in a letter dated Friday that about 300 employees at its 2000 W. Winona Ave. and 3454 N. Detroit St. facilities in Warsaw would be permanently laid off, with a majority coming from the Detroit Street location.
KGP Telecommunications provides equipment and services for the telecom industry.
The layoff follows a move by an unnamed “large customer” to decrease use of KGP’s services in early February, and potentially could lead to the permanent closure of the Detroit Street facility. Most of the positions impacted are manufacturing and assembly workers and office personnel.
“We anticipate … that the business decline will impact enough employees to constitute a mass layoff,” wrote Matthew R. Drevlow, general counsel for KGPCo, in the letter to the state.
The company announced in 2015 an expansion of its Detroit Street facility, stating it planned to add up to 140 jobs there by 2017. It was not immediately clear how many employees currently work at each property.
Drevlow said the company could take into account tenure, skill sets, performance and attendance as it determines which employees will be laid off.
The layoffs are expected to take place April 17, or in the two weeks that follow.