By Shereen Siewert

Harley-Davidson laid off 40 employees at the company’s general merchandise division amid falling sales nationwide.

The layoffs are part of a restructuring plan, according to a Reuters report.

Earlier this year, the company reported a decline in motorcycles sales as it continues to adapt to an aging clientele while navigating the costs of higher tariffs on its motorcycles shipped overseas.

Harley continues battling weak demand in the U.S., which accounts for more than half of its sales. Declining sales forced the company to revise down its motorcycle shipment forecast for the year.

U.S. motorcycle sales peaked at more than 1.1 million in 2005 but then plummeted during the recession and haven’t recovered. Analysts say there aren’t enough millennial riders to offset the number of baby boomers who no longer ride.

Harley officials say the layoffs won’t impact any workers in the company’s manufacturing division.