United Defense Industries to cut up to 200 jobs

FRIDLEY (AP) -- United Defense Industries says it will cut up to 200 jobs as a result of the U.S. Army's cancellation of the contract for the Crusader artillery system.

The Pentagon's decision to cut the program threatened 800 high-tech jobs in Minnesota. However, the company will receive funding to adapt technologies it has developed to a new cannon.

Earlier this year, Defense Secretary Donald Rumsfeld decided to cancel the Crusader, saying the 40-ton gun is too big for the lighter, more flexible Army of the future.

Pushed by Minnesota Democrats, including Rep. Martin Sabo, and Sens. Mark Dayton and Paul Wellstone, Congress has agreed to redirect $9 billion dollars in Crusader funding to other alternatives.

United Defense Industries of Fridley has received a new Army contract to apply the technologies it has developed to a new, lighter cannon. But company spokesman Jeff Van Keuren said there's not enough work for the current staff.