Kongsberg is making 400 workers temporarily redundant in the wake of the coronavirus pandemic.
The Norwegian ship systems group, which has almost 11,000 employees, said demand for its maritime services has been hit by the outbreak.
"As a result of the lower level of activity, we have temporarily laid off and sent temporary layoff notices to around 400 employees," the company said.
Kongsberg has been contacted for further information on how Norwegian state aid will support the staff.
The move is in addition to temporary layoffs and other capacity adjustments implemented internationally.
Before the virus took serious hold in Europe last month, the company said it planned to make 450 staff redundant as it aims to save money and integrate Rolls-Royce Commercial Marine.
The outfit bought the UK operation in April last year and it has been merged into a new Kongsberg Maritime division called Commercial Marine.
These permanent layoffs are part of a plan to save NOK 500m ($54m).
The redundancies have been brought forward from 2022 to this year.
Maritime operations badly affected
The Kongsberg Maritime unit has extensive international operations and is directly affected by the downturn in trade and the global economy, Kongsberg said.
Some non-critical development projects are on hold as a way of ensuring liquidity. At the same time, the drop in the oil price may lead to less activity in the offshore market, the outfit warned.
The group has already implemented a number of measures to deal with "this extraordinary situation", Kongsberg added.
It said its main priority is to safeguard health, jobs, safety and liquidity, and to deliver on its obligations to customers, owners and other important stakeholders.
Travel restrictions, quarantine provisions and other measures to prevent infection are causing difficulties in production and in the customer and supplier chains.
"The difficulties are especially noticeable in Kongsberg Maritime," the company said.
Kongsberg said it still has a sound financial position and is well equipped to deal with extraordinary situations.
