UP to nine jobs are to go at a firm which makes vital defence electronics.
Only 35 people work at Selex Galileo on Nevile Chute Road in the city, but the international firm is set to cut the workforce by 25 per cent.
The workforce in Portsmouth are highly-skilled, working on cutting edge technology for the aviation side of defence.
But the firm has blamed restrictions on defence spending from the UK governments and elsewhere for the need to cut jobs.
Only the Portsmouth operation, and a much larger one in Basildon, Essex, are affected.
A spokesman for the firm said: ‘Falling defence spending in the UK and internationally as well as long delays in forecasted programmes has lead to a reduction in the number of orders placed compared to those expected during 2012.
‘Measures have been ongoing for several months to help alleviate some of the workload issues.
‘However, to ensure competitiveness going forward, the company has been forced to announce a planned reduction in the workforce of up to 25 per cent at the Basildon and Portsmouth sites.’