PEACHTREE CITY, Ga. -- Panasonic is closing its car stereo manufacturing plant by the end of next year, meaning that 400 people will lose their jobs.

The plant closing is one of the largest business cuts in Georgia this year. Panasonic workers were notified of the decision on Thursday, according to Peachtree City officials.

The company will still operate its product development department and regional administrative headquartes at the Peachtree City location, which opened in 1987. Panasonic was forced to make the cuts in the down U.S. auto market, which has been affected by high gas prices, falling home prices and the down economy.

The closing will happen in phases over the next 16 months.