MURRAY, Ky. — Like Santa's elves, workers at Mattel Inc.'s plant in this western Kentucky town produced everything from Barbie playhouses to battery-powered pickups for nearly 30 years.

        The toy factory — long a source of community pride — is closing, putting 980 people out of work. Mattel announced last week it is moving the operation — the last of its manufacturing facilities in the United States — to existing plants in Mexico.

        “It was terrible news. Terrible,” 12-year employee Luvenia Olive said as she stood outside the plant.

        The announcement also left many in this college town of nearly 15,000 wondering whether the good times and low unemployment of the past few years are starting to end.

        “We're going to do what we can to help to get these people employed, but we don't know at this stage what can be done,” said Mayor Freed Curd.

        The news was especially hard to take because the work is going to Mexico, said Eugene Alton, 58, a materials handler employed at the plant for nearly 18 years.

        “We're the last part of Mattel, really, that's producing in this country,” said Mr. Alton, a married father of three. “I hate to see the jobs go because of the greed of the dollar.”

        The plant, opened by Fisher-Price in 1973, was acquired by Mattel in 1993. At its peak last year, it had 1,300 employees.

        Products made there in recent years include child-safety car seats, Barbie Jeeps and playground equipment, said John Williams, executive vice president of the Murray-Calloway County Chamber of Commerce.

        The company was a good corporate citizen in Murray, Mr. Williams said.

        The layoffs at Mattel are scheduled to begin in June and last over an 18-month to two-year period. The decision was part of the company's financial realignment announced last fall.

        Seven distribution centers will remain in the United States: in Hebron, Ky.; and in California, Texas and Wisconsin.

        Bob Daugherty, owner of Log Cabin Restaurant, said the 24-hour diner could lose business because it is a meeting place for Mattel workers getting off work in the late-night hours.
       

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