Hundreds of workers at an international freight shipping company have lost their jobs following a corporate takeover.

Up to 500 jobs based at Gatwick airport face the axe after TUI Hapag-Lloyd, the world's fifth largest container shipping company, said it was cutting swathes of its workforce at its subsidiary company CP Ships.

Staff knocking off their shifts last night said many older workers at the firm were devastated.

More than 300 jobs in finance, accounting and administration are being cut at CP Ships' former headquarters at Gatwick, which was taken over by Germany-based Hapag-Lloyd at the end of last year and is to be closed.

The losses are among 2,000 jobs, 44 per cent of the worldwide workforce, which the company is shedding to make savings of about £125 million.

A further 200 jobs in companies supporting the Gatwick operation are under threat.

It is the latest blow to the workforce at Gatwick and comes a month after airport operator BAA announced it was shedding 230 managerial jobs.

Gatwick employs more than 25,000 people, many from the Sussex area, and contributes an estimated £1.6 billion to the Sussex economy every year.

Hapag-Lloyd, which paid about £1.2 billion for CP Ships, has told workers they can apply for a handful of jobs being created at the firm's centres in Hamburg, Germany, and Barking, Essex.

One employee from the account finance department, who did not wish to be named, said the announcement had left older members of staff shell-shocked.

She said: "It's not happy news. We have been told we can move to Hamburg in Germany where there are 80 jobs going.

"I have a daughter and my husband has a good job so I am not going to go.

"I am young so I am hopeful I will get something else but the people who have been here 20 years or more are devastated.

"They are helping us find other jobs. People have been brought in to help us organise CVs, letters and find other jobs."

A 32-year-old containment fleet manager who has been with the company for 12 years said: "Some people have been offered jobs in New Jersey in America by TUI.

"Only about five people are going. I think they were hoping people would go to Hamburg but being English it doesn't really appeal. Only 30 to 40 are going.

"Those who are going would rather stay here but it could be worse."

He said there had been a lot of confusion about which jobs were available and where.

"A lot of people have been with the company a long time and I think they have been offered a reasonable redundancy package."

Elizabeth Canna, CP Ships' vice-president of communications, said: "The Gatwick headquarters will close by the middle of next year and all the jobs will be made redundant.

"As with any redundancy situation there will be some people who won't be able to find a job with the company.

"Gatwick is our biggest office with 300 employees. It's very much a headquarters building and deals with everything from corporate finance to commercial management and sales management.

"Everything will be moved to Hapag-Lloyd's headquarters in Hamburg because obviously companies don't need two headquarters buildings. None of our UK staff are unionised but we are following the normal consultation process carefully."

She said a website had been set up listing jobs available at Hapag-Lloyd but some jobs had up to 30 applicants.

Mark Froud, chief executive of business support group Sussex Enterprise, said other large-

scale redundancies had been announced at Grampian Country Foods and Express Dairies during the last year but the South-East economy was still strong.

He said: "Unemployment is still almost non-existent. This is not a reflection on the competitive position of Sussex business or CP Ships. It's about corporate acquisitions in which there are always winners and losers. In this case Sussex was the loser."

Thursday, April 20, 2006