The countdown has begun for a major employer in rural East Tennessee. At a manufacturing plant in Telford, 136 employees have been told their jobs will disappear between late April and the end of August 2026, following a federal Worker Adjustment and Retraining Notification (WARN) filed just before the holidays. The facility will shut down in stages, line by line and shift by shift, until production stops completely. For Washington County and the surrounding area, the closure signals not just the loss of a factory, but a test of how a small community absorbs a sudden economic shock.
Economic Fallout
When the final shift clocks out, an estimated 7 to 10 million dollars in yearly wages will vanish from the local economy. Those paychecks currently flow into rent and mortgages, groceries, auto repairs, health care, and other day‑to‑day spending that supports a web of small businesses. In a rural area with limited large-scale employers, the disappearance of 136 manufacturing positions is expected to reverberate well beyond the plant gates.
Local officials and economic development staff warn that this kind of wage loss can slow housing demand, reduce sales tax collections, and strain public services that rely on a steady revenue base. For Washington County, which has leaned on industrial employment as a stabilizing force, the closure removes a pillar at a time when equivalent roles are hard to find. Each worker leaving a relatively high-wage manufacturing job faces a labor market in which many available positions pay less and offer fewer benefits.
A Global Supplier, A Local Closure
The company behind the decision, JTEKT North American Corporation, is a large automotive supplier with more than 20 facilities across the United States and a workforce of roughly 5,000 people. Its components are widely used throughout the vehicle manufacturing sector, making JTEKT a familiar name within the auto supply chain.
On December 4, the company filed a WARN notice with Tennessee officials confirming that its Telford facility will close permanently. The phased shutdown is scheduled to begin around April 30, 2026, and conclude by August 31, 2026. According to the filing, all 136 employees at the plant will be laid off, and the action is not temporary.
JTEKT is not leaving the state. The company will continue to operate its plants in Morristown and Vonore, underscoring that the Telford closure is a targeted move within a broader network. For workers in Washington County, that distinction raises difficult questions about why their site was chosen and how differences in product lines, costs, and demand factored into the decision.
Industry Shift and EV Pressures
The Telford plant’s fate is closely tied to a rapidly changing automotive landscape. Traditional suppliers across the country are under pressure as automakers reduce their reliance on conventional engines and drivetrains. As electric vehicles gain market share, demand for some legacy components has declined, leaving certain facilities struggling to maintain full production.
Plants built and equipped for older designs now compete in an industry pushing toward electric platforms, advanced electronics, and greater automation. For facilities unable to adapt quickly or retool at scale, consolidation becomes more likely. JTEKT’s explanation for the closure aligns with this broader pattern, in which locations most tied to waning product lines are increasingly vulnerable.
From a corporate standpoint, concentrating production at fewer, more adaptable sites can improve efficiency and align operations with evolving market demand. For the Telford workforce, those strategic calculations translate into job loss and a forced search for alternatives after years, and in some cases decades, of steady work.
Community Impact and Response
Behind every eliminated position is a household now recalculating its future. More than 136 families will be making decisions about health insurance, retirement savings, education plans, and caregiving as the shutdown unfolds over several months. Some employees support children in local schools, others care for aging relatives, and many are in mid‑career or approaching retirement age, when relocation or retraining can be especially difficult.
The closure also threatens to alter the fabric of daily life in Telford and surrounding communities. Reduced consumer spending can affect local shops, restaurants, and service providers. Municipal budgets may feel the strain if property and sales tax receipts soften over time. Schools, clinics, and infrastructure projects that depend on predictable funding may have to adjust plans if the tax base erodes.
In response, state and regional agencies have begun mobilizing. The Northeast Workforce Development Board has been notified and is preparing a rapid response effort intended to help displaced workers access job‑search assistance, training opportunities, and available benefits. JTEKT has indicated that transfer options to other facilities and career transition support will be offered in some cases. Workforce specialists are likely to steer laid‑off employees toward fields such as advanced manufacturing, logistics, and health care, where demand is stronger.
Yet finding replacement jobs that match existing wages and benefits remains a significant challenge, especially in rural labor markets. Even as electric‑vehicle and battery‑related industries grow, skill requirements, distance from new plants, and family obligations can limit how many workers are able to move or retrain in time. Many may face accepting lower‑paying roles, contributing to the gradual erosion of middle‑income industrial employment in communities like Telford.
Looking Ahead
By August 31, 2026, the Telford facility is expected to be fully shuttered. Local leaders will then confront a central question: can new employers be attracted quickly enough to replace 136 lost jobs and millions of dollars in annual wages, or will the closure mark a more permanent contraction in the area’s industrial base? The vacant site itself may become a focal point for recruitment efforts, with officials seeking an operator able to use the existing infrastructure and workforce skills.
For JTEKT, the shutdown is one step in a larger strategy to navigate a changing automotive sector and invest in technologies tied to the next generation of vehicles. For Washington County, it is a test of resilience as the region works to keep experienced manufacturing workers employed close to home. How Telford responds—through retraining, new investment, or a mix of both—will offer an early indication of how rural manufacturing communities can adapt as the auto industry accelerates into an electric and more highly automated era.
Sources
“JTEKT closure to affect 136 employees in Telford.” Times News, Dec. 7, 2025.
“JTEKT announcing 2026 closure of Telford plant.” SuperTalk 92.9, Dec. 5, 2025.
“JTEKT North America in Telford to close facility; more than 100 employees affected.” WCYB (NBC News), Dec. 4, 2025.