Morgan Olson van manufacturer in

Morgan Olson van manufacturer in Loudon reducing workforce due to 'economic conditions and forecasts'

Workers in Loudon said they were told they would be laid off in the coming months as the company responds to delays in vehicle purchase orders.

WBIR.com-LOUDON COUNTY, Tenn. — A van manufacturer with a production plant in Loudon said they were "temporarily reducing their workforce" in response to communications from their customers.

Morgan Olson is a manufacturer of walk-in step vans usually used by businesses to transport materials and products. They are also commonly used by food trucks and for package delivery services. The company said its customers said new vehicle purchase orders would be delayed "due to the current economic conditions and forecasts."

So, Morgan Olson said it would reduce its workforce at all three of its locations in Michigan, Tennessee and Virginia. Even though the workforce would be reduced, the company said production would continue at all three locations.

"Ongoing production will continue at all locations as the company works towards expanding its customer base and preparing for market recovery," said Kenneth Klein, a spokesperson for the company.

The Loudon location was built in late 2015. The production plant is more than 300,000 feet large and when it was first built, the company expected to hire at least 400 workers.

According to a federally-required WARN notice, 290 people were impacted. It says the notice was posted on Oct. 25, and the layoff date will be on Dec. 22.