Australian government-owned shipbuilder ASC announced it would cut 130 jobs from its air-warfare destroyer project by the end of February.
The cuts are due to a reduced amount of work on the three Hobart-class destroyers.
The number of people required for work on the ships has been reducing since early 2015.
ASC will cut some 45 trade positions while another 85 positions would be reduced in the welding, painting, operator and other trade groups.
The company added that the workforce reductions would have no impact on ASC’s submarine workforce or planning for the future submarine project.
In October 2016, ASC split into three businesses to better focus on the projects ahead. The split resulted in the creation of shipbuilding, submarine sustainment and infrastructure companies.