3,000 more jobs lost in downturn

Jan 14 2009

Almost 3,000 job losses were announced within hours of the Government unveiling a multi-billion pound rescue package aimed at unblocking lending to smaller firms hit by the financial crisis.

The biggest losses were at banking giant Barclays, which said it planned to cut 2,100 jobs at its retail and commercial banking business, while car-maker Jaguar Land Rover said it would axe 450 jobs, including 300 managers, as part of a cost-cutting exercise.

Meanwhile administrators for music, DVD and games retailer Zavvi closed another 18 UK stores with the loss of 353 jobs.

The remaining 74 Zavvi stores in the estate will continue to trade with a view to finding a buyer for all or part of the business, administrators Ernst and Young said. Last week 22 stores closed with the loss of 178 jobs.

The losses were the latest in a growing tide of redundancies which are bringing increased levels of misery to workers across the country.

Prime Minister Gordon Brown's spokesman said: "Obviously, the Government is disappointed to hear this news. All company job losses are of course regrettable.

"Jaguar Land Rover's decision reflects the continued downturn in the market and that is a reflection of what is happening more generally in the global economy.

"The Jobcentre Plus rapid response teams will offer support and work to offer a package of measures to help those facing redundancy to find other work as quickly as possible."

The move by Barclays came less than 24 hours after it confirmed proposals to cut a similar number of posts at its investment banking, Barclays Capital, and Barclays Global Investors businesses.

The latest cuts, which could affect staff in high street branches, bring the total number of job cuts announced this week by Barclays to more than 4,000.