Electronics firm SELEX Galileo has announced it will cut up to 25 per cent of the workforce at its sites in Basildon and Portsmouth.
The company employs 676 people across both sites, with 35 of those based at Portsmouth. It said it had faced "major challenges" throughout 2012.
Falling defence spending in the UK and internationally as well as long delays in forecasted programmes has lead to a reduction in the number of orders placed compared to those expected during 2012."
More top news
The Flying Scotsman returned to the south this weekend following last Saturday's hugely popular visit.
Philippa has Sunday's weather for the west
Philippa has Sunday's weather for the east