BAE Systems announced hundreds of layoffs of its San Diego shipyard employees Tuesday.
The United Kingdom-based defense contracting company notified about 300 employees that they could lose their job in early September this year.
According to the company, the layoffs come after a decrease in near-term ship repair work, which has been handed over to some local contractors.
Due to a change in the Navy acquisition process, contractors compete for work on a ship-by-ship basis, the company said, instead of it being "bundled by ship class over several years."
In a statement, BAE Systems said: "We recognize that the workforce reduction will impact our dedicated employees and our shipyard team overall. We greatly appreciate the contribution and hard work of the employees who will be leaving our organization."
The shipyard currently employees approximately 1,570 people.