OSHKOSH, WI (WTAQ) - The Defense Division of Oshkosh is laying off 450 workers in January.

Oshkosh says domestic military vehicle production volumes are declining significantly next year due to reductions in the U.S. Defense budgets as military spending returns to peacetime levels.

Oshkosh says it is laying off production employee at its Oshkosh defense plants.   

Oshkosh is hoping to roll out a program for early retirees, while also helping those effected transition into other employment.

Oshkosh Corp. says these layoffs are not due to sequestration. 

Oshkosh Corp. says they will still employ 3,500 defense employees in Oshkosh.