The company, which recently hired a turnaround consulting firm, said the staff cuts would be immediate. Officials also warned that ongoing restructuring efforts will also affect hourly employees at its three plants.
"We do anticipate reductions in the hourly work force, as well as renegotiating the union contract; however, the backlog and production levels in the manufacturing plants will dictate the number of workers affected," said Dorsey Chief Executive Officer John L. Pugh.
"This is not the complete and final restructuring plan," he said. "I feel very strongly that the pain should be felt at the top first."
It was also announced that Chief Financial Officer Allen Cain will be vacating his post this month, as will former President Lorri Palko, who resigned earlier in the year but remained with the company to oversee a production contract.
Two weeks ago, the 800-employee company announced that it hired consultants from The Recovery Group, a Boston-based firm, to help reduce drains on its cash and to boost its operating performance.
Pugh stated earlier that the company's revenue is down about 23 percent this year, in line with other truck equipment manufacturers.