Oshkosh Corp. [OSK] on Thursday said it plans to lay off several hundred employees in its defense segment in December due to declining military spending.
The company said it will reduce its hourly workforce by between 250 and 300 positions and eliminate about 70 salaried positions, the majority of which are temporary, including open positions and positions that will be vacated by retiring personnel.
“We continue to reshape our workforce as a result of significantly lower U.S. defense spending and dramatic reductions in military vehicle production,” John Urias, president of Oshkosh Defense, said in a statement.
The company said it plans to work with state and local workforce development agencies and local employers to help its employees that will be affected by the looming layoffs.
Oshkosh will have more than 1,800 employees as part of its defense segment in Oshkosh, Wis., and regional offices globally.
The company makes a variety of heavy, medium and light trucks and protected military vehicles, primarily for the U.S. military. It is competing for work on the Joint Light Tactical Vehicle, the Medium Support Vehicle System family of vehicles, and other international opportunities to grow its defense business, which benefited significantly while U.S. military forces were fighting in Iraq and Afghanistan.