OSHKOSH, Wis. (AP) -

Defense contractor Oshkosh Corp. plans to lay off 900 people this summer as military vehicle orders decline.

The Oshkosh-based company says it will begin laying off 700 hourly employees in mid-June, with 200 salaried employees to be laid off by the end of July.

Company leaders say production is declining as the military continues to wind down from the wars in Iraq and Afghanistan.

Oshkosh executive vice president and president of defense John Urias says while other business segments of Oshkosh and many U.S. companies were enduring layoffs during the recession, Oshkosh Defense was hiring employees. But Urias says circumstances have now changed.

WLUK-TV reports that Oshkosh Defense said it was able to save about 165 jobs by keeping in-house work that traditionally had been done externally.