Oshkosh Corp. laying off 450

OSHKOSH - Four hundred fifty employees of Oshkosh Defense will be laid off over a three-week period starting Jan. 11.  The reduction is about 11 percent of the division's overall local workforce.

"After the layoffs, Oshkosh will still employ 3,500 employees here in Oshkosh," said spokesperson John Daggett.

Daggett told FOX 11 the cuts are necessary given lower demand from military customers.

"Two wars are ending, domestic military production volume is going to decrease in 2013 and the fact is the budgets are really moving back down to peacetime," explained Daggett.

Daggett says recent cuts to the U.S. military play a part in this as well. He told FOX 11 Oshkosh Corporation did work to lessen the blow.

"We actually went to the U.S. Army to ask them to extend the production schedule for our FMTV," said Daggett.

Oshkosh will continue that production through at least 2015, which Daggett says helped avoid more layoffs.

• Click here to read the full statement from Oshkosh Corporation

United Auto Workers Local 578 leaders declined to be interviewed on camera, but released the following statement:

"This afternoon the local union leadership of UAW Local 578 received news from Oshkosh Corp. regarding layoffs of roughly 450 hourly employees in January 2013.

"As expected, the union is very concerned - not only about the impact to our membership but also their family members and the surrounding community.

"The union is also very concerned that the company has outsourced work and we are in the process of attempting to bring this work in and explore additional work with the company.

"We are looking into ways to lessen the impact of an outright layoff, such as the possibility for some to retire early.

"The union will continue discussions with the company on these matters to lessen the burden as much as possible."

Both sides say they will be in talks about lessening the layoff burden through January. One option being discussed is the possibility of offering early voluntary retirement packages to some workers.   

This news comes not long after a billionaire investor in Oshkosh Corp. made an offer to buy the company. Carl Icahn said earlier this month he wants the company to be more active in the truck-building industry. He owns about 10 percent of the company's stock, but wants more than 50 percent. Icahn offered to buy shares for nearly $3 more than the stock is worth. Company officials have asked shareholders not to accept the offer at this time.

We tried to contact Icahn Thursday, but he did not make a comment.