Global economic downturn hits UK jobs

Hundreds more jobs are set to go across the UK as the global economy continues to slide.

All 600 workers at car parts manufacturer LSUK are facing redundancy after the Sheffield-based firm was put into administration today.

LSUK had been bought by rival Euro Car Parts but in a statement today the new owners said: “Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.”

Insolvency advisor Tenon Recovery has been appointed to manage the administration, and has set up a freephone number for staff.

Meanwhile, DIY retailer Focus warned that 750 jobs were at risk after a review of costs. The firm is planning to close its distribution centre in Bristol in a bid to reduce overheads.

It said: “In a direct response to our need to reduce costs and deliver greater efficiencies, we have made the difficult decision to close our distribution centre in Severnside, Bristol.”

The company said that about 750 jobs were at risk across its support centres, stores and distribution centres.

Also today, online auction site eBay reported plans to axe 10% of its global workforce – in the region of 1,000 jobs – although it is unclear whether the UK office will be affected.

The FTSE 100 index was down 5% today as investor concern grew for the health of European banks.

The Chartered Institute of Personnel and Development warned last week that half a million jobs could be lost by the end of 2009 due to the credit crunch.

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