Nestl workers reacted with stunned disbelief today at the decision to slash 234 jobs.

Staff had no idea the announcement was being made as they arrived at the factory this morning.

A KitKat worker, who asked not to be named, said: "This is the start of a long process of closing it down. It's the thin end of the wedge.

"I'm utterly convinced the factory will go the same way as Terry's."

City of York Council leader Steve Galloway has pledged to do what he can to "ease any adverse effects" on York residents.

"Coming so soon after the closure of the Terry's factory this is a stunning blow for the city," he said.

"Manufacturing industries in York, and beyond, operate in an intensely competitive market and we recognise that, to remain competitive, costs have to be controlled.

"We will be urging senior Nestl chiefs to sustain and, if necessary, increase their investment in the city.

"In return, they can expect the full commitment and loyalty of the local community for their industry.

"We have a good reputation in the city for being able to provide both counselling and reskilling services, and our economic development team have already been in touch with Nestl's management to offer assistance.

"The ability of the local economy to absorb large numbers of displaced workers in a short period of time will be a particular challenge to us all."

Ryedale MP John Greenway said: "It is to be hoped that these redundancies can be achieved voluntarily.

"The pressure on prices throughout the market is now having a major impact on confectionery retailers.

"My concern would be if the company signified any erosion of its commitment to York.

"I am sure Nestl has done this with considerable reluctance. They look like they have not had any choice."

Nestl employees, starting work at the factory at 7am today, said they knew nothing about a redundancy announcement.

The Evening Press spoke to several workers who were about to start their shifts, but no one had heard anything about the potential job losses.

A receptionist, who asked not to be named, said: "I hadn't heard there was going to be an announcement today. No one's told us."

A man who works in the engineering department, who also asked not to be named, said: "Some people are worried that they might lose their jobs.

"I don't think anyone knew it was going to be announced today."

A shop floor worker said: "I hadn't heard any rumours. We'll be the last to know."

Chocolate plant loss

TODAY'S announcement comes less than six months after York's other chocolate factory - Terry's of York - shut down with the loss of more than 300 jobs.

Terry's parent company, Kraft, made the bombshell announcement in 2004 that it was transferring production of famous products such as Chocolate Orange and All Gold to the continent.

The decision ended a confectionery tradition going back more than 200 years, to 1767.

Thousands of readers backed an Evening Press campaign to save Terry's, but Kraft pressed ahead last autumn with the shutdown of the factory in Bishopthorpe Road, across the city from the Nestl factory.

All Gold is now made in Sweden, while Chocolate Orange and other products are made in several European countries including Poland.

Many redundant Terry's workers were able to find employment elsewhere last year - some at the Nestl Rowntree factory.

Months of rumours

TODAY'S redundancies come after months of rumour and speculation at the Nestle factory.

A stream of employees and relatives have contacted the Evening Press to say they feared major job losses were on the way.

Some said they feared the long-term future of the whole factory was in jeopardy, with repeated rumours the site might be turned into a hospital.

The speculation was fuelled by news that big new products such as KitKat Kubes and Low Carb KitKat had been quietly abandoned despite millions of pounds of investment, and by the shock departure of managing director Chris White last autumn.

The company sought to ease job fears at that time.

But in January, it emerged that hundreds of temporary agency staff were to lose their jobs, and last week it was confirmed that about 14 finance staff at Nestl UK's York office were losing their jobs.

Updated: 14:27 Thursday, March 02, 2006