Oshkosh Corp. said Thursday it plans to eliminate about 760 jobs
from its defense division this summer, or 29 percent of the
group's workforce, a decision driven by lower demand for its
mine-resistant trucks and other military vehicles.
About 700 hourly
positions will be cut beginning in June, and 60 salaried positions
will be eliminated starting in July, the Wisconsin-based company
said. Oshkosh Defense will be left with about 1,850 employees.
company has about 12,000 employees worldwide.
"We need to
reshape our workforce with U.S. defense spending down as a result
of tight government budgets and a return to peacetime
operations," said John Urias, the executive vice president of
Oshkosh Corp. and president of Oshkosh Defense.
Urias said the
company plans to contact county and state workforce-development
agencies and local companies to help the affected employees find
Shares of Oshkosh
Corp. fell $1.80, or 3 percent, to close Thursday at $57.28.
Shares have traded in a 52-week range of $33.88 to $60.45.
administration is ending combat operations in Afghanistan on Dec.
31 and has begun withdrawing troops, although it would like to
leave up to 10,000 troops to continue training Afghan forces and
conducting counterterrorism missions.
Obama signed a bipartisan budget bill in December that provided
$552.1 billion for the regular military budget and $80.7 billion
for the war in Afghanistan and other overseas operations. The
amounts reflected deficit-driven efforts to trim spending and the
drawdown in Afghanistan after more than a decade of fighting
left Iraq at the end of 2011.
Oshkosh and two
other defense contractors are also competing for a contract for
joint light tactical vehicles, a prototype combat vehicle that's
expected to replace Humvees for U.S. ground forces. The prototypes
are lighter and have improved technology and protective gear.
If Oshkosh were
to win the bid, it could receive up to $13.75 billion in Defense
In addition to
making military vehicles, Oshkosh Corp. builds a range of
commercial vehicles including fire trucks, snowplows, garbage
trucks and boom lifts.