Illinois-based CTS Corp. (NYSE: CTS) is detailing plans to end manufacturing operations in Elkhart. In a notice to the state, the company says more than 100 employees will be laid off by the end of the year as a result of the decision. CTS, which was previously headquartered in Elkhart, says the move is the result of a "planned restructuring of its global operations" that was first announced in 2016.
The company says about 40 employees will be affected by the first round of layoffs, which will begin September 24. The layoffs are expected to continue through December 31. CTS says the closure of the Elkhart manufacturing facility will be permanent.
The affected employees are represented by the International Association of Machinists Local 1118 and the United Automobile, Aerospace, and Agricultural Workers of America International Association Local 941. CTS says plant closure agreements have been negotiated with both unions and certain bumping rights do exist under the terms of those agreements.
Two years ago, CTS announced plans to phase out production at the Elkhart plant by the middle of 2018, a move that would ultimately affect 230 workers over three years. The company said at the time the plant would transition to a research and development center.