BAE Systems on Friday announced it will be reducing its local workforce, laying off 175 workers during the next few months.
The military contractor in West Manchester Township notified a few employees this week, but the bulk of the layoffs will occur once work on the Medium Mine Protected Vehicle program is complete.
About 150 workers -- mostly union employees -- will be laid off when that work is finished in April or May, said spokesman Randy Coble.
The layoffs are dictated by decreased business demand, he said.
"There's been a decrease in defense spending since the country has started to end wars in Iraq and Afghanistan," Coble said.
The workforce reduction is primarily caused by decrease in production rates for the Bradley and M88A2, and the Medium Mine Protected Vehicle program ending this spring, he said.
Reductions in engineering and consolidation of prototyping work are also contributing factors, according to a company statement.
Some employees will be eligible for severance benefits, according to a company plan, and employees who are members of the bargaining unit will be eligible for benefits outlined in their collective bargaining agreement.
Laid off employees are also eligible to apply for any open positions within the BAE Systems family of companies, Coble said.
The company employs 1,250 people in York County.