Gulfstream Aerospace Corp. will cut production rates for large and mid-size aircraft this year, resulting in 1,200 layoffs.

The General Dynamics subsidiary will reduce large-cabin aircraft production from the projected rate of 94 to 73 and mid-size aircraft production from 30 to 24. The company cited a deteriorating backlog, particularly during February, and continued weak demand.

"Despite the current challenges, we continue to believe that Gulfstream's backlog provides a solid foundation for the business in this tough market environment," stated Nicholas D. Chabraja, General Dynamics chairman and CEO. "We regret the impact of these actions on our employees and their families, and are doing our best to minimize the number of workers effected.

The layoffs include 550 contractor personnel, the company said.