WAKARUSA — Monaco Coach is cutting 600 jobs across the country because of slow sales; 300 of those workers are from Warsaw, Elkhart and Wakarusa.

"She's been there 28 years and it’s a big shock for us,” Jim Swihart told WSBT News.

Swihart’s wife was one of those laid off at the Monaco Coach plant in Wakarusa. He also works there, but his job was not affected.

“I'm working, still got insurance — a big factor anymore. House is paid for, vehicle paid for, so we'll make her …. [we have to] just keep plugging along,” Swihart said. “Hope things don't get any worse. You just try to pick up the pieces."

The layoffs are expected to have a ripple effect on the local economy. Downtown businesses in Wakarusa say they expect to feel it one way or the other.

"I think it’s going to affect the restaurants and service stations more than it will be me,” said Kenny Twa of Wakarusa Hardware.

“We had Travel Supreme, they shut down. Then we had the one layoff by Monaco, now we've had the second one. And you take all those people and some of them have got to be your customers,” said Dave Odiorne of Raymond’s Restaurant. “A customer here, a customer there — in a small business it adds up. It hurts.”

“Noon hours are going to be down,” said Stan Cook of Cook’s Pizza. “They were slipping a little bit from their first lay off a few months back. So I expect that not to rebound real soon."

Monaco Coach says rising fuel prices and less demand for certain RVs are partially to blame for the layoffs.