Company planners think the recession has bottomed out.
"Since we think we're at the bottom, we don't anticipate more layoffs," said Beatrice Cardon, vice president of corporate communications for Volvo Construction Equipment.
Volvo told its production workers on May 27 to expect 135 layoffs at the end of July. It is the third layoff in four months at the plant that manufactures machines that build roads.
"It's sad news for everyone," Cardon said. "There is no good way to do this."
The company is asking workers to volunteer for the layoffs. The company severance package is based on the number of years of service.
"Some who are close to retirement or who may have other sources of income may want to opt for the severance," Cardon said. "People with less seniority will have a chance to keep their jobs, if we have enough volunteers. I don't imagine we'll have enough volunteers. We will know who is affected by the end of July. It's a long process to determine who is laid off."
A person opting for the severance package can be rehired when the economy turns around, but will no longer have his or her seniority, Cardon said.
The company is still moving its motor grading work from Ontario to Shippensburg. The Canadian plant will close at the end of June, but the start of production in Shippensburg will be slower than what was intended before the economy soured.
Volvo, the county's sixth largest employer, laid off 40 office workers in May and 94 production workers at the end of January.