The aerospace and defense contractor Lockheed Martin is cutting 1,200 jobs in its space systems division.
The company said on Tuesday that the cuts will be nationwide and it will reduce the division's work force by nearly 8 percent and middle management by 25 percent.
The impact of cutting down the jobs will affect most in Sunnyvale, Pennsylvania and Denver where several major projects are already winding down, a media report said.
About 16, 000 people are employed at its space systems division in 12 different states.
It's really all about the budgetary environment that is affecting our customers, said Lockheed Martin spokesman Steve Tatum. There are fewer new business opportunities on the horizon.
A variety of products, from satellites to spacecraft and missile defense systems, used by military and commercial customers are made by the space systems division.