OSHKOSH (WITI) -- Oshkosh Corporation announced it will lay off some 900 workers this coming summer. The company has made millions making military vehicles for war.
The company announced its defense division will reduce its Oshkosh workforce by about 700 hourly positions. Those positions will be cut in mid-June. About 200 salaried positions will be cut by July.
Oshkosh officials say daily production volumes are expected to decline by 30% this summer. This is mainly due to cuts in defense spending as wars in Iraq and Afghanistan wind down.
This will impact business partners in southeastern Wisconsin as well.
One of the Milwaukee area's largest suppliers to the vehicle company is KAPCO. The businesses have worked together for more than 20 years.
KAPCO Vice President of Community Relations, Neil Willenson said in a statement: "This gradual decrease in military work has been forecasted for some time. Given Oshkosh Truck is also a worldwide leader in the manufacture of non-military platforms, we are confident our work with them will continue for years to come."
Milwaukee's Bentley World Packaging has worked with Oshkosh Corp. for about 15 years and has also seen an anticipated slowdown in military spending.
Owner Tom Bentley told FOX6 News: "Oshkosh Corp. has been a great partner, but other business will offset the announcement."
Oshkosh Corp. did well during the recent deep recession and was hiring those laid off from places like the Janesville General Motors plant.
All the companies who work with Oshkosh Corp. have business in non-military sectors. They say they will count on that in the months ahead.