Based in Oshkosh, Wisconsin, the company designs and manufactures a broad mix of tactical and combat vehicles for the U.S. military, its allies, and even civilian fleets. Its lineup ranges from the Joint Light Tactical Vehicle and Mine-Resistant Ambush Protected trucks to electric and fuel-efficient postal vehicles for the U.S. Postal Service.

For example, its Joint Light Tactical Vehicle (JLTV) replaced the military’s Humvee.

Most of that work happens in Wisconsin, while its newer Spartanburg, South Carolina, plant focuses on the Postal Service’s Next Gen Delivery Vehicle program.

But the company’s military side is slowing down, and it’s taking workers with it

Oshkosh Defense confirmed this week that about 160 production employees will lose their jobs starting January 5, 2026.

According to Fox 11 News, the company explained it’s facing overstaffing in some production areas and needs to “align its workforce” with current and anticipated work levels.

Employees affected by the decision will be notified on December 12 and offered transition support and resources.

The United Auto Workers Local 578 president, Robert Lynk, said the workforce had been bracing for a slowdown for months

Production wrapped up on phase one of the Joint Light Tactical Vehicle program.

Oshkosh lost the contract for the follow-up JLTV 2 project earlier this year, which leaves a gap in its defense workload.

Lynk added that the company sent some work previously handled in Wisconsin, like USPS delivery vehicle production, to South Carolina, limiting options for local retention.

The company said it tried to avoid cuts through upskilling, insourcing, and voluntary reductions. But those efforts weren’t enough to offset the slowdown.

It’s a tough blow for a city whose identity has long been tied to the defense giant that bears its name.

Oshkosh Defense says it remains committed to supporting its people and to producing top-quality vehicles for U.S. and allied forces around the world

But 160 workers face layoffs after the holidays. The path forward for them will depend on what new contracts or local opportunities arrive first.