Raytheon has laid off workers in Massachusetts and Rhode Island.
Michael Doble, a company spokesman, told NBC 10 on Tuesday the layoffs were a "small reduction in workforce", but wouldn't disclose specific numbers.
"Shifts in engineering and production work, delay in contract awards and the current budgetary environment requires us to realign our resources," he said.
Doble said the affected employees will be given severance packages and have the opportunity to apply for other jobs within the company.
According to the Boston Business Journal, the layoffs come after the defense company failed to secure a $915 million contract to the build the U.S. Air Force's new space surveillance radar. The contract went to Lockheed Martin.
The radar, called a "Space Fence," is focused on tracking about 200,000 pieces of old satellites and other objects in space, Reuters reported.
Raytheon and Lockheed Martin had been developing rival versions of the fence.