Leading defence company BAE Systems has announced that it is cutting almost 3,000 jobs at sites across the country.
BAE employs 40,000 people in the UK and 100,000 worldwide.
Thirty-five jobs are to go at BAE's technology development facility at Hillend in Fife.
The defence contractor's Hillend facility specialises in developing on-board systems for aircraft.
In August, BAE Hillend was awarded a £20m radar contract for Typhoon fighters and work was expected to commence this year and end in 2013.
BAE chief executive, Ian King, said in a statement that the company must "ensure its long-term future."
Most of the cuts will be made in BAE's military aircraft division, due to a slowdown in demand for the Eurofighter Typhoon fighter aircraft.
Mr King said: "Some of our major programmes have seen significant changes. The four partner nations in the Typhoon programme have agreed to slow production rates to help ease their budget pressures.
"Whilst this will help extend our production schedule and ensure the production line stays open until we receive anticipated export contracts, it does reduce the workload at a number of our sites.
"Pressure on the US defence budget and top-level programme changes mean the anticipated increase in F-35 production rates will be slower than originally planned, again impacting on our expected workload."
(JG/BMcC)
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