The reduction represents 6 percent of its workforce, which will be reduced to a total of 2,263 including 1,073 in Florida.
At the start of 2010 United Space Alliance employed 5,500 workers at the Kennedy Space Center, Florida Today reported.
The Houston-based shuttle contractor's layoffs are part of ongoing downsizing as NASA's shuttle Transition and Retirement program comes to an end, spokeswoman Tracy Yates said.
Since the end of the shuttle program in July 2011 three of the orbiters have been moved to museums while one remains at the Kennedy Space Center.
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