The General Dynamics NASSCO shipyard in Barrio Logan is warning employees that as many as 700 layoffs could be coming in January.
The shipyard, which has 3,500 workers, has a new contract to built six fleet oilers for the Navy, but is nearing the end of an eight-ship contract for tankers for private companies.
Letters were sent to employees last week, and a layoff notice was filed Friday with the state Employment Development Department.
“We are working diligently so not all employees who were notified will be affected,” the company said in a statement. “We regret the impact this will have on employees and their families.”
NASSCO operates the largest shipyard on the West Coast and builds both commercial and Navy ships.