THE number of jobs to be cut at one of York's biggest firms has been almost halved, it was announced today.

Bosses at Portakabin were expected to shed up to 80 posts at the factory in New Lane, Huntington, but have now reduced the cull to 48 jobs, predominantly among the shop floor workforce.

Union leaders have blamed the job losses on the Government pulling out of a £19 million order to build housing for asylum seekers in Oxfordshire.

The order would have meant six months work for the 720-strong workforce.

A spokesman for Portakabin said approximately 40 jobs would be axed from the shop floor and eight from the offices. Most will officially leave the company on Monday.

"We've worked together with the staff representatives and the trade unions and had quite a number of volunteers (for redundancy)," he said.

"We reviewed the requirements, and because some employees had already left the company we took account of that and arrived at the figure we have.

"It's a very difficult situation and clearly we regret having to arrive at redundancies.

"We've worked with the unions to make sure it has all been done fairly and in a sympathetic manner."

The process of axing jobs from the different manufacturing sections is based on a points system. They include welders, process workers, joiners and labourers. Brian Anderson, York regional industrial organiser for the Transport and General Workers Union, said 19 shop floor staff had taken voluntary redundancy.

"I'm very sad about this because it's a good workforce and a good company," he said.

Mr Anderson said the plant was capable of taking on huge orders from abroad but "nothing is forthcoming".

The recent cuts come on the back of job losses in the sales section announced last September.

Portakabin's spokesman added: "The fact we've got a good number of voluntary redundancies means some people have been saved as a result of that.

"The future depends on there being more business out there."

Updated: 10:51 Thursday, October 06, 2005