Paccar cuts 300 more jobs at Quebec plant amid tariffs and weak truck demand

A third round of cuts in less than a year is affecting 300 people at the factory, which makes light and medium-duty trucks.
Oct. 29, 2025
2 min read

Key takeaways

  • Paccar cuts 300 workers at its Quebec plant, marking the third layoff in 10 months due to tariffs and weak truck demand.
  • Sainte-Thérèse plant capacity drops to 18 trucks/day from 96, highlighting how tariffs directly impact production.
  • Other OEMs like Volvo, Traton, and Daimler also cut jobs, showing industry-wide adjustments to economic and market pressures.

Executives at Paccar have announced a third round of layoffs in about 10 months at the company’s only plant in Canada.

Paccar, the parent of the Peterbilt and Kenworth brands, is cutting 300 workers at the factory in Sainte-Thérèse, Quebec, citing the impact of the Trump administration’s recently imposed tariffs on the production of trucks. The move comes after the company said in July that it would lay off 175 people, adding to the 250 cuts announced in December 2024.

A regional leader of the Unifor labor union told the Financial Post that the latest move will leave the Sainte-Thérèse plant with about 500 workers and capacity to build 18 trucks per day from its previous 96. In a statement, the union said it is looking to work with Paccar and political leaders but said quick action was needed and called on the Quebec government to prioritize vehicles made in Canada.

“This is a wake-up call. If the Sainte-Thérèse plant loses access to the U.S. market, we must immediately replenish its order book with local customers,” Unifor Quebec Director Daniel Cloutier said. “The Quebec government has direct leverage through public purchasing. It must lead by example and press all levels of government in Canada to do the same.”

A Paccar official did not respond to a request for comment about the layoffs and the future of the Sainte-Thérèse factory.

Word of the layoffs come about a week after Paccar CEO Preston Feight said he was hopeful that some political and regulatory certainty, as well as a better truck replacement cycle, might lead 2026 sales to grow up to 10% from this year’s depressed levels. Feight and his team expect Paccar will deliver about 32,000 trucks globally this quarter, in line with their third-quarter number.

Paccar hasn’t been the only truck OEM to cut jobs this year: Volvo executives, who also run the Mack brand, this spring laid off about 1,000 people as they sought to adjust to lower demand. Soon after, leaders of International parent company Traton said they would cut a shift and 900 jobs in Mexico. And in July, executives of Daimler Truck North America announced about 2,000 layoffs at five of their North American plants to help them maneuver through “a challenging economic environment.”

About the Author

Geert De Lombaerde

Senior Editor

A native of Belgium, Geert De Lombaerde has more than two decades of experience in business journalism. Since 2021, he has written about markets and economic trends for Endeavor Business Media publications FleetOwner, Healthcare Innovation, IndustryWeek, Oil & Gas Journal, and T&D World. 

With a degree in journalism from the University of Missouri, he began his reporting career at the Business Courier in Cincinnati. He later was managing editor and editor of the Nashville Business Journal. Most recently, he oversaw the online and print products of the Nashville Post and reported primarily on Middle Tennessee’s finance sector and many of its publicly traded companies.

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