Daimler Trucks North America announced on Monday, June 6, that it plans reducing its headcount, including 170 workers at its Portland branch, due to sales drop. They will temporarily lay off 1,240 workers across North America. There are 20,000 people across North America working for Daimler Trucks, and about 2,800 of them in Portland.

The biggest reductions in headcount are planned for North Carolina, where 600 employees in Mt. Holly and 200 in Gastonia will have to temporarily leave their jobs. The company is also planning cuts in Santiago, Mexico, where it is laying off 270 employees.

The moves will become effective on July 1 in Portland where Daimler’s headquarters are located.

The cuts are the result of sustained sales drop and a decreased build rate. Daimler expects a 15%-decrease over 2015 figures. When the figures go up again, employees who have been laid off will have first rights to be recalled.