"THIS is the beginning of the end." That was the view of York Nestl staff, following yesterday's shock announcement that 234 jobs are to go at the chocolate factory.

Many workers described the tense atmosphere inside the plant, as employees wondered where the axe would fall.

A KitKat production worker told the Evening Press: "We're not surprised by any of this. People are gutted about it.

"This is the beginning of the end for the factory."

Shift staff filing into the factory's Wigginton Road entrance at 2pm yesterday still had not received official confirmation of the job losses.

A production worker on the Smarties section, who has been at the factory for six years, said he was "extremely worried" because his wife had recently given birth.

"I only know what I've heard on the news - I expect we'll get a briefing," he said.

"It has been coming for a while. I'm really worried because I've now got a little baby boy. I want to stay as long as I possibly can."

Another worker cycling out of the plant held aloft his mobile phone and shouted: "Kids don't want to eat chocolate any more, they want these."

Outside the factory's Haxby Road entrance, a production worker confirmed managers had briefed them about the job cuts during their shift.

"They've told us very little. They said it's all down to negotiations with the unions," he said.

"To be honest, we knew as much after the briefing as we did before it.

"Some jobs are going because the Squares and Munchies ranges are going to the Fawdon factory (at Newcastle), and they're

cutting back production on the KitKats.

"The atmosphere isn't very good, there's a lot of uncertainty around."

A worker from the Nestl offices, where 70 posts will be lost, said: "There's a lot of uncertainty, and there's a strange mood around the place."

How the 234 job losses were announced

THIS is the statement issued by Nestl Rowntree as it announced 234 York jobs were to be axed:

Nestl Rowntree operates in a fiercely competitive confectionery market, and has strived to maintain market share against a backdrop of increasing energy and materials costs, and constant pressure on prices from retailers. The net effect of these market pressures means that the organisation is falling behind in its competitive positioning, and the ability to

support its brands in the long-term.

The business needs to be committed to producing consistently high-quality products at competitive costs, in a flexible and supportive working environment. In order to ensure that it is able to meet these requirements, a review of the structure of the business, and the organisation of its business functions, has been carried out. A review of current manufacturing capability has also been carried out to make the most efficient use of assets.

Subject to consultation, a restructure is now planned which would regrettably lead to a reduction of around 275 permanent jobs. There will be a spread of job losses across all levels at Nestl Rowntree's head office and its manufacturing sites at York and Fawdon in the North East. In addition, it is proposed to transfer the manufacturing of the Munchies product from the York facility to Fawdon within the next few months.

The proposed redundancies would occur over a phased period from spring 2006. It is hoped that the majority of redundancies will be achieved voluntarily, wherever possible. Professional outplacement support will be provided to employees to assist them in finding alternative employment, and to provide support for additional training where appropriate.

Paul Grimwood, managing director of Nestl Rowntree said: "Today's proposed changes are about transforming our confectionery business so that it is fit for the future, and is best able to meet the demands and requirements of the market in the 21st century. Our focus is firmly on reinvestment in the business, and the continued drive for improved quality and marketing support for our brands.

We are responsible for making some of the best loved confectionery brands in the UK - such as KitKat, Smarties, Aero and Rowntrees. Today's announcement is about building the long-term manufacturing future of these brands in the UK."

Nestl Rowntree will now enter into consultation with employees and union representatives.

Nestl job cuts at a glance

Nestl announced 275 job losses in total. Of these, 164 factory workers and about 70 office workers will go at York.

About 40 jobs will be lost at Fawdon, near Newcastle.

The redundancies will be phased in from this spring.

Updated: 10:36 Friday, March 03, 2006