CTV News has learned that General Dynamics Land Systems has laid off dozens of London workers.
Some 48 salaried employees were given the bad news Wednesday.
The loss leaves about 2000 remaining workers at the London facility which builds light armoured vehicles.
The news comes after it was announced in February that the federal government was providing $404 million to upgrade military vehicles for Canadian troops.
A spokesperson said the company regrets the layoffs but it is positioning itself to remain competitive.