Black day for British economy claims 3,000 jobs

The gloom over the UK economy deepened yesterday when almost 3,000 job losses were announced by four different companies.

The largest came from Boots, the chemists group, which said up to 1,000 jobs were likely to go at its Airdrie manufacturing plant in Lanarkshire which is being closed. It also warned that further job losses were possible at its Nottingham head office and its distribution business.

United Biscuits, the maker of snacks such as Hula Hoops and Jaffa Cakes, said 900 job cuts would be made due to the closure of a biscuit factory in Ashby de la Zouch, Leicestershire.

MyTravel, the holiday company formerly known as Airtours, said it was considering making 700 people redundant in its UK business as it seeks to adjust its cost base to a lower level of sales. Most of the jobs are likely to go in Manchester and Rochdale.

Bookham Technology, a telecoms components maker, said it was axing up to 200 positions at its plant in Abingdon, Oxfordshire as it cuts production of one of its product lines.

Boots' decision to close its plant in Airdrie over the next two years was described as a "bitter blow" for the Scottish town. Karen Whitefield, MSP for Airdrie & Shotts, said: "There will probably be few families in Airdrie who will not be affected by the decision."

Helen Liddell, the Secretary of State for Scotland in whose constituency the factory is based, was accused of "appalling complacency" after awarding Labour 10 out of 10 for its handling of the Lanarkshire economy just the day before.

Workers were told of the closure at lunchtime and given the rest of the day off. A number of evening workers who were due to start at 10pm were told the news and then sent home.

Boots said the closure was part of a £100m cost reduction programme that would also be applied to its head office and logistics division. Boots has been manufacturing cosmetics and other toiletries on the site since 1949 when it was attracted there by government grants. It said the closure would cost £39m but deliver annual cost savings of £16m.

MyTravel, the struggling tour operator, said it is looking to cut 700 UK jobs and reduce its charter airline capacity in the eastern Mediterranean this summer as it seeks to adjust to tough market conditions.

It is thought that flights to holiday resorts in countries such as Greece and Turkey may be trimmed to reflect concern among holidaymakers about the looming war with Iraq. Competition from budget airlines such as Ryanair and easyJet has been another factor. MyTravel shares fell 5 per cent.

United Biscuits said its Ashby factory would close at the end of 2004. It is moving production to bigger sites with scope for modernisation. The company said that up to 500 jobs across its other biscuits sites could be created by the restructuring. It is keeping its national distribution centre and snacks factory at Ashby where it employs an additional 900 staff.