EIGHTY jobs are to be axed by one of North Yorkshire's biggest employers, it was announced yesterday.

The 800-strong workforce at Portakabin, in York, is to be cut from 800 to 720 by the end of next month.

Staff were told that the jobs were to go at a series of meetings at the manufacturing site in Huntington.

The jobs involved are mainly in sales and manufacturing and are being cut as a result of market conditions, the portable buildings maker said.

The announcement follows the loss of 20 jobs in the commercial sales department in September last year.

One employee said yesterday: "We won't know exactly who is going to go until after we have had talks between the unions and management and consultation.

Another said: "We suspected something was up even though the company is doing well. We are all gloomy."

A spokesman for Portakabin said: "Over recent months, the volume of orders for the company has been below levels required to ensure full use of the capacity of assets.

"Efforts have been made to mitigate this work shortage, but it is really an indication of the UK as well as the economy in Europe, where Portakabin has subsidiary companies in France, the Netherlands and Germany.

"But the manufacturing happens at York, which is why York is primarily affected."

He said there had been an attempt to put more emphasis on public sector orders, given the Government's enthusiasm for modular building, but he said that public sector decisions "take a long time".

The spokesman said every effort would be made to avoid compulsory redundancies.

The news is another blow to the city's economy, coming soon after the announcement that 220 jobs are to go at the Nestl Rowntree's confectionery factory in Haxby Road.

A range of managerial, supervisory and technical support posts will go during the next 18 months following a review of costs by the company.