On the heels of securing an $89 million U.S. Army modernization contract and introducing a new family of multi-mission autonomous vehicles, Oshkosh Defense is making headlines again; this time for workforce reductions.
Following a $52.8 million decline in third-quarter sales, the company announced plans to lay off 160 employees at its Oregon Street plant in Oshkosh, Wisconsin, effective January. The decision was confirmed by both Alexandra Hittle, Oshkosh Corporation’s Director of Global Marketing and Communications, and Bob Lynk, President of Auto Workers Local 578. According to both, the layoffs come after all other options were considered.
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Oshkosh Corporation said the move is a response to overstaffing following a reduction in production of Joint Light Tactical Vehicles (JLTVs). The company lost the bid for the JLTV Phase 2 contract with the U.S. military two years ago, when AM General was awarded a five-year, $8.7 billion deal in February 2023 to take over production.
Lynk told the Oshkosh Northwestern via email that the staffing cuts stem directly from the lost 2023 bid, saying, “As leadership, we’re exceptionally disappointed in where things are headed.”
While Oshkosh Defense continues to market and sell JLTVs internationally, the company appears to be pivoting away from military vehicle production. In June, Oshkosh rebranded its Defense segment as “Transport,” signaling a shift in a broader direction.
This transition follows other challenges in recent years. In 2021, Oshkosh Corporation secured a 10-year, $6-10 billion contract with the U.S. Postal Service to produce 60,000 Next Generation Delivery Vehicles. However, production delays and cost increases nearly derailed the project, with only 93 units delivered as of December 2024 out of an expected 3,000.
The decision to manufacture the delivery vehicles in South Carolina rather than Oshkosh also drew criticism from Local 578 members, who argued the work should have stayed in Wisconsin. The union currently represents 1,268 members across seven plants statewide—a number that will shrink once the layoffs take effect in January.
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