Wedtech said it laid off more than 1,000 workers.

An unidentified company official said the military contractor being investigated for alleged payoffs may also file for bankruptcy protection. The high-ranking Wedtech executive, who spoke on condition that he not be identified, said all that remains of the company is a skeleton staff. Last week, the Navy found Wedtech in default on a $134-million contract to manufacture pontoons and ordered the company to stop production. About $24 million of that contract had yet to be paid to the company, it was reported.