BAE to Lay Off over 1,000

British mega-contractor BAE announced Thursday that it will lay off between 1,100 and 1,300 workers at its Sealy, Texas manufacturing facility. The cuts come in response to the loss of a $3 billion contract to construct military vehicles.

“This was an extremely difficult decision,” said BAE Global Tactical Systems President Dennis Morris, “but a necessary one in order for us to remain viable in an increasingly competitive and challenging environment.”

The contract for building what the army calls Military Tactical Vehicles was awarded to the Wisconsin-based Oshkosh corporation last year.