In southwestern Minnesota, Suzlon Energy says it plans to cut its workforce in half at the company's wind energy plant in Pipestone.
The 160 layoffs come in what is shaping up to be a very rough year for the industry. The nation's credit problems have hit wind energy companies hard.
Suzlon says it will cut 70 jobs by August, and another 90 by the end of September.
Pipestone Mayor Laurie Ness says the only silver lining in the announcement is that Suzlon plans to keep the plant open.
"We're hoping this is going to be a temporary fix for them and that things will turn around," says Ness. "And maybe next year be able to be back up to speed."
It's the second major economic blow to the southwest Minnesota city in less than a year. Last fall a boat company closed in Pipestone, costing the city more than 200 jobs.
Suzlon spokesman Mike Aabram says the layoffs at the wind energy company are caused by difficult economic conditions brought on by the recession.
"The entire sector has been hit by the downturn, so some companies just can't get the credit right now," said Aabram.
Since last year's credit collapse, it's been difficult for wind companies to get financing to put up new electricity generating turbines. That's hurt sales worldwide for Suzlon, which is headquartered in India.
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