A decision on which of SDL's 400 employees will be laid off will come by Sept. 1, according to Dave Norton, president of the Research Foundation.

"The truth is, when you're in a contract for services with the federal government, this is not atypical," Norton said in a phone interview with past year and employing 60 people during peak activity.

Pavich asked employees to remain positive through these difficult times at Friday's meeting to announce the layoffs.

"We are a nonprofit research corporation and do not have funds available to sustain employees when program revenue is not there," Pavich said. "We will do everything possible to help employees during this period of adjustment."

Although SDL is owned by Utah State, its operations are financially independent of the university, Norton said.

"The reduction in force will only involve SDL and the Research Foundation employees," he said. "As far as growth and recovery are concerned, yes we believe that this is but a moment in time."